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NEGATIVE 
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Author: 


International  Trade 
Conference 


■    ■  mm  m 

Trade  thought  of  post 
Europe 

Place: 

New  York 

Date: 

[1919] 


MASTER  NEGATIVE  « 


COLUMBIA  UNIVERSITY  LIBRARIES 
PRESERVATION  DIVISION 

BIBLIOGRAPHIC  MICROFORM  TARGET 


ORIGINAL  MATERIAL  AS  FILMED  -  EXISTING  BIBLIOGRAPHIC  RECORD 


i 


40' 


Intermtlonal  trade  oonferenoo,  Atlantic  City, 

1919.  • 

Trade  thpu^lit  cxf  post-war  Europe}  old-world 
needs  and  Anorioan  opportunities  as  reflected  in ;  - 
addronsos  and  reports  at  the  International  trade 
oonferenoe,  Atlantic  City,  11.  J,,  Oci.  20,21,J?2, 
2Z,?A,  1919,  callod  by  the  Chanber       oooraeroe  of 
the  United  States,    Hew  York,  Irving  national 
bank,  ^1919 3 

88  p.        20  cm,    (irvins  national  bank,  IJew 
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Vd.  V 


DECEMBEB.  1919 


No.  6 


TRADE  THOUGHT  OF  / 
POST-WAR  EUROE 


NUMBER  THIRTY-FOLR 


LIBRARY 
SCHOOL  OF  BUSINESS 


IRVING  NATIONAL  BANK 

WOOLWOBTH     BUILDING    NEW  YORK 


LIBRARY 


TRADE  THOUGHT  OF  POST-WAR  EUROPE 


Trade  Thought  of 
Post-War  Europe 

CMJO.WOKLD  NBDS  AND  AMEUCAM  OCTOaiUmTiM  AS 
IKFLEGTKD  IN  ADDRESSES  AND  RKPOKTS  AT  TBE 

ATLANTIC  CRT.  NJ..  OCT.  U,  21,  SI.  tt,  U,  1919 


CALLED  BY  THE  CHAMBER  OF  COMMERCE 
OF  THE  UNITED  STATES 


Irving  National  Bank 

WOOLWOBTR  BUILDING,  NEW  TOBK 


iHit  pamphWk  iSttt  tidrtj^bortli 
€if  •  Mriet  pdblklidl  1»7  tlie  iKfiMO 
NAimuL  Bahk  m  m  contoiMoa 
topdblicthmi|jitiiponqiiegtioMgfe» 
lating  to  natfawMil  prosperity. 

For  list  of  piili]icatioiia»  which  will 
be  forwarded  upon  request,  tae  tlw 
final  iMmaa  irf  thia  hooticili 


in  A 
sc.  J 


7 


.■!  _.,  V-   


CONTENTS 


I 

THE  INTERNATIONAL  TRADE  CONFERENCE 

A  brief  review  of  the  Atlantic  City  congress  and  what 
it  accomplished  towaids  supplying  Europe'a 
need  few  foods,  raw  materials  and  credits, 


n 

WHAT  EUROPE  NEEDS  MOST 

^ou  ranain  strangers  to  our  efforts  you  will  renuun 
strangers  to  our  future— but  you  will  not  remain 
strangers  to  our  sufferings''   19 

Ms.  EuQENK  ScHNEiDEB.  ChftiniiAB,  FmbcIi  MiMioa;  Pmidtat  ol  Ciwwt 
Sted  Works,  Pans,  France. 

Mb.  William  G.  HAU>oia,  Governor,  Federal  BcAenre  fioaid,  Wuhipg- 

tttkt  n*c» 

Sni  Jambs  Hopb  Simpson,  Manai^ing  Director,  Bank  of  Liverpool,  liver- 


Ms.  Jambs  S.  Albxandbb,  Chairman,  CobImwdcs  CoBunittee  on  Ci«dil  md 

^  PfcBAisat.WBti0BBiBBBkqlC0BMBMBS,llwrYB^ 


Mb.  Flobimond  Hankab,  rfcsiiMii.  Bc^isa  lliMioa:  niraelor,  NbIiomI 
Bank  of  Belgium,  Bruiseb. 

Mb.  Altbed  C.  Bedford,  Chairman,  Executive  CoBUBittts  cf 
Chairman,  Standard  Oil  Company,  New  York. 

Mb.  F.  O.  Watts,  President,  First  National  Bank,  St.  Loois.  Mo. 


Mr.  William  C  Bbbvibkb,  Sessstaqr*  PiipsilMial  «f 

ton,  D.C. 

Mb.  Albbbt  E.  jANssmi  Director.  NbHobbI  Baak  of  BelgiuBii  ftyfiHij, 
university  of  Lonvam,  Belgium. 

Mb.^  Bbbcbbwbidqb  Long,  Assistant  Secretaiy,  DefMfCMBt  of  Stats. 


Ma.  HOMBB  L.  Fbbodsoh,  Pretideat,  Chamber  of  Commerce  of  the  United 


III 

HELPING  EUBOPE  TO  BUY 

'There  is  a  great,  world-wide  seardty  of  capital:  for 
five  yean  the  world  has  devoted  its  energies  to  the 
destruction  of  capital."   £8 

Mr.  Alfred  C.  Bedford,  Chairman,  Executive  CoauaittiB  bI 
Chairman,  Standard  Oil  Company,  New  York. 


CONTENTS 


Helping  Europe  to  Buy — Cont.  

lb.  Mtbon  T.  ISmamm.  niiiiiiiii,  DUm  OulUt  mi  Gute  Cofif. 

Ifm.  WnuAif  6.  H4niiM»  GvfWBor.  Mml  Itniiw  Bovd,  Wirthig 

Mfc  DanMnoo  Gdcwi.  Repcwwtnttw  «t  ItalM  T^MMiy  im  VmM 
SliiHb  Mmt  Ywlu 

Ml.  Uhlxam  C.  RaoriBLO,  Secretary,  Department  of  CfMUMrat,  WmUw 
taii.B.C 

Mb.  F.  O.  Watts,  President,  First  National  Bank,  St.  Louis,  Mo. 

Sir  James  Hopk  Smmm,  MMMgH^  OuMtor*  Buk  cl  limpooL  Ufm- 

pool,  England. 

Mr.  James  S.  Alexander,  Chairman,  Conference  Committee  on  Cftdil 
and  Finnace;  President.  National  Bank  of  Commerce,  New  York. 

Mb.  Norman  F.  Dayu,  Prendent,  Trust  Company  of  CnU,  Nop  Toik. 

IV 

WHAT'S  BACK  OP  EUROPFS  CaiEDIT 

**If  you  want  to  loKiir  what  a  nation  will  do  wiien  put 

to  a  test,  ask  what  it  has  done  in  the  past,  even 
obtuse  Germany  knows  that"  

Mb.  Dwran  W.  Monow.  1.  P.  Morgaa  *  Compinf.  NMr  Toik. 

SiB  Jambs  Hops  SmraoM,  Manayng  Director,  Bank  of^Liverpool,  Liver- 
pool, England. 

Mr.  Alfred  C.  Bedford,  Chairman,  Executive  Committee  of  Conference; 
Chairman,  Standard  Oil  Company,  New  York. 

BaaoK  Du  Marais,  Yieo-GkMrama*  Fknck  Miimob;  Director.  Credit  I^TM- 
nab,  Paris,  France. 

Mr.  Myron  T.  Herrick,  Chairman,  Union  Carbide  nad  Catboa  Ctafaif. 
Cleveland,  Ohio;  formerly  Ambassador  to  France. 

Mb.  Ferdinando  Quartiert,  Chairman,  Italian  MliiiBBi  Pfwid— t,  IlaMaa 
Ckemkal  Ukdiutriet  C<»poration;  Milan,  Italy. 

lfa.y.aWAfi^FiMiJMt.fiwtNatiQ«dBMJuatUak 

Ma.  Albbbt  E.  Jawibbn,  Director.  Natioaal  Baak  af  Belgium,  Bramlit  Pipa- 
iMor.  PaifmAjr  of  LawraiB.  Bi|gia« 

Mb.  Eugene  Schnbioeb,  Chairman,  French  Miiikm;  Priiideat  of  CfoMal 
fliael  Watkt.  yinaeib 

Mb.  Nobman  H,  Davis,  President,  Trust  Company  of  Cuba,  New  York. 

Mb.  James  S.  Alexander,  Chairman,  Conference  Committee  oa  Cndii  aad 
Finance;  President,  National  Bank  of  Commerce,  New  York. 

Mr.  Domenioo  Gmmi»  lipNMMlfaai  UaKaa  Trnmrnf  im  UwktAiMtm 
Naw  York. 


CONTENTS 

V 

LABOR'S  ATTITUDE  OVERSFAS 

'"The  abuse  made  of  the  words  socialization  and  nation- 
alisation has  brought  about  a  f onnidahle  leactkm 
in  publie  opinkm."    

Sir  James  Hops  Simpson.  Maaagiiv  Diicctor.  Baak  d  LiviipoQl,  livafpaoL 

England. 

Mb.  Flobimond  Hankab,  Chairman.  Belgian  Mission;  Director.  Natioaal 
Baak  <l  BiilgiaM,  BiamJj. 

Mb.  Euoami  8c«a«ii>BB,  Chairman,  French  Mission;  President  of  Creusot 
SImI  Wadkib  fiaia  -  - 

Umu  p.  O.  Wati%  Ptandeat,  Pint  Natkiail  Bank,  St.  Loon,  Mo. 

BygM«ll|r]^  French  Mission;  Director  Credit  Lyon- 

Mb.  AimD  C  Bedfobd,  Chabama,  EMCvtiTo  Coaunittce  of  Coafeteace: 
CkMTBwa.  Stawiaid  OU  Ccmp^^lhw  TariL 

Mb.  Albert  E.  lANaamr,  Director,  NatioBal  Butk  of  Bfhiiiai.  PkafflMor. 

University  of  Louvain,  Brussels,  Beigium. 

Mr.  John  H.  Fahet,  Vice-Chairmari,  Executive  ConuBltlBB  <f  CoirfnaMa; 

St.  Johns  River  Shipbuilding  Company,  Boston. 

Mb.  Homer  L.  Ferguson,  President,  Chamber  of  Commerce  of  the  United 
Statet;  President,  Newport  News  Shipbuilding  Company,  Newport  New% 

M^BuBOmnMB  Lomb,  Ambtaat  Secretaiy.  Department  of  Sute,  Wadi- 

VI 

FINANCING  EUROPE'S  NECESSITIES 
Report  of  Committee  on  Credit  and  Finance  urges 
formation  of  corporations  to  extend  long-tenn 
conunercial  credits  to  Cwtinental  countrieB.  

VII 

EUROPE'S  MATERIAL  NEEDS 

**Eight  American  Committees  summarize  the  results  of 
their  conferences  with  special  Britishs  Fiendit 
Belgian  and  Italian  CommittoeB''    

Committee  on  Reconstruction  Supplies  fls 

Committee  on  Foodstuffs  

<Mi  Metals  og 

aa  Shipping  70 

aa  Coal  Sappljr  7s 

 ^ 

 ff 

 IB 


47 


57 


CONTENTS 


VIII 

PIANS  PERMANENT  CONFERENCE 

Organization  Committee  lays  down  the  lines  on  which 
a  permanent  international  trade  bocly  should  be 
formed  and  defines  its  functions   81 

IX 

WOULD  REMOVE  TRADE  RESTRICTIONS 

Committee  on  Resolutions  urges  that  freedom  of  action 
in  business  be  restored  and  materiab  and  com- 
modities be  interchanged   8ff 


FblF 


DECXMBER,  1919 


No.  6 


I 

The  btternatioiial  Trade  Conference 

A  review  of  the  Atlantic  City  cangres$  and  what  it 

accomplished  towards  analyzing y  supplying 
and  financing  Europe's  neede 

IN  size,  in  spirit  and  in  work  accomplished,  the  Inter- 
national Trade  Conference  at  Atlantic  City,  October 
20th  to  October  24th9  was  the  most  important  gathering 
ol  the  sort  sinoe  foreign  trade  began  to  be  a  major  American 
interest.  At  the  invitation  of  the  Chamber  of  Commerce  of 
the  United  States,  commissions  made  up  of  leading  bankers, 
manufacturers  and  economists  had  been  sent  over  by  Great 
Britain,  France,  Bdgimn  and  Italy  to  lay  tihdr  needs  and 
resources  before  American  business  men,  and  work  out  a 
basis  on  which  the  necessities  of  each  country  could  be  sup- 
plied without  too  heavy  a  strain  upon  its  resources. 

To  meet  the  Allied  Missions  and  discuss  with  them  the 
problems  and  factors  involved,  the  Chamber  of  Commerce 
had  drafted  from  its  membership  some  of  the  ablest  pro- 
ducers, merchants  and  bankers  of  the  country*  For  three 
days  brfore  the  general  sessions  <^  the  ccmfamice  began  on 
Wednesday  evening,  eight  groups  of  these  specialists  repre- 
senting the  metals  trades  and  the  coal,  oil,  textiles,  food- 
stuffs, chemical,  shijMiing  and  machinsry  interests,  threshed 
out  wMi  comiiuttees  from  each  of  the  niissk^ 
requirements  in  their  particular  lines. 

When  the  regular  Conference  sessions  were  inaugurated, 
therefore,  grounds  of  mutual  understanding  had  been  estab- 
lished ami  the  addresses  of  both  Eurqiieans  and  Americans 
were  dHreetly  to  the  point.  Each  Americcm  committee  pre- 
sented a  summary  of  its  conclusions  to  the  Conference,  pre- 
puang  also  a  more  elaborate  rq[K)rt  for  the  infomatimi  of 


• 


INTEBNATIONAL  T&AD£  CONF£E£NC£ 

the  Chamber  and  its  members.  These  summaries,  together 
with  the  rqports  ot  the  Cotniiiittoe  on  ReMlutiont  and  the 
Committee  on  Credit  and  Finance,  are  printed  in  the  eecoiid 
section  of  this  booklet. 

It  was  on  the  meetings  and  the  findings  of  the  Committee 
on  Credit  and  Finance  that  the  inteieat  of  the  cmference 
chiefly  centered.  With  the  exception  of  the  Britidi  Mission, 
which  early  announced  that  no  special  credits  or  loans  would 
be  asked,  the  European  delegates  frankly  admitted,  and  the 
American  speakers  likewise  recognized,  that  the  faig  task  was 
to  find  a  practicable  method  of  financing  the  Frendi,  Italian 
and  Belgian  purchasing  programs  in  this  country. 

Material  Needs  Can  Be  Supplied 

The  iM^dimmary  meetings  had  devdoped  the  fact  that 

the  United  States  could  supply  nearly  all  the  pressing  needs 
of  the  Allied  countries  for  raw  materials,  foods,  fuel,  machin- 
ery «bm1  eoppfies.  Bot  the  question  of  paying  for  them,  in 
viefw  <^  tile  continaed  depreciation  of  European  exchanges, 
was  a  problem  for  which  no  immediate  solution  was  dis- 
covered, either  at  Atlantic  City  or  during  the  journey  of  the 
Allied  Misflions  about  the  country. 

Real  progress  was  made,  however.  Chairman  A.  C.  Bed- 
ford, in  the  address  with  which  he  brought  the  Conference  to 
a  close,  summed  up  the  final  results  in  these  words: 

'^llw  Gonfef»ce  has  giea%  clarified  the  pid^ 
national  credit,  and  the  methods  by  which  the  people  of  the 
United  States  may  co-operate  with  those  of  Europe  in  has- 
tening the  reconstruction  of  the  world.  It  has  been  made 
dear  tibat  if  future  credits  on  a  large  scale  are  to  be  eitcnded 
to  Europe,  they  must  be  made  not  through  government  but 
through  private  initiative.  Yet  all  such  activities  must  at  all 
times  have  the  cordial  co-operation  and  encouragement  of 
governmentd  mtherities.  Nothing  diodd  be  qpared  in  the 
form  of  legislation  or  such  governmental  action  as  may  be 
necessary  to  promote  this  great  end. 

To  kiid  to  Einrope  the  stupendous  « 
mentioiied  wffl  require  saving  an  the  part  of  all  our  people. 
The  extension  of  such  credits  cannot  be  by  our  banks  alon^ 


10 


INT£&NATIONAL  TBADfi  CONFS&BNCE 


The  banks  themsdves  largdy  act  as  ageacias  tbfoui^  wUdi 
to  mofailiae  the  credit  resources  of  tibe  merdiants,  tiie  farmers* 

the  workers  and  citizens  generally.  Our  people  must  be  made 
to  see  that  through  saving  and  thus  making  possible  these 
Europeu  credits,  the  surest  contrilMitiQft  wiU  ha  maib 
prosperity  and  futme  weifiBure,  not  akme  of  Europe,  but  of 
our  own  country  itself. 

''Our  people  must  realiie  that  ability  to  sava  the 
wherewithal  for  the  immpt  restoration  of  the  productivity 

of  Europe  cannot  be  acquired  by  turmoil  and  strife  at  home. 
I  venture  to  commend  to  our  labor  friends  the  importance  of 
realizmg  what  they  are  about  in  the  ^rikea  now  thraatmad 
in  tiUs  country .  Industrial  strife  m^s,  not  ahme  no  savings 
for  Europe,  but  it  means  disaster  to  ourselves — to  every  one 
of  us.  The  lesson  of  this  is  of  vital  importance  to  every  man 
gathered  here,  and  it  is  a  lesson  whidi  it  is  incumbent  upon 
each  one  of  us  to  Inring  home  in  every  way  we  can  to  those 
with  whom  we  are  individually  associated.** 

Wh&HiEuroper$SihtaikmNemf 

As  for  Europe's  present  plight— Great  Britain  excepted— 
Mr.  Eugene  Schneider,  President  of  the  French  Mission  and 
head  of  the  famous  Creusot  steel  works,  saw  it  as  the  natural 
consequence  of  four  years  of  despsmta  warfare  plus  eteren 
months  of  effort  to  make  over  the  industrial  machinery  of 
each  nation  to  peace-time  production. 

''At  the  outbreak  of  war,"  he  suggested^  ''each  nation 
was  Mkaa  yast  fiim  wiiooa  ceHars  and  atareaoontamed  stodui 
accumulated  by  fcMrmer  generations.  At  the  present  time 
cellars  and  stores  are  well-nigh  empty.  We  used  all  our 
stocks  and  for  a  space  of  four  years  wa  prodnoad  cnly  to 
destroy.  Nevw  hare  the  wants  of  Europe  been  greater  nor 
her  resources  more  scanty.  Eleven  months  after  the  armis- 
tice, eleven  months  after  our  victory,  we  are  poor,  weak* 
.  crushed  under  an  enormous  debt.  Oixt  populations  are  too 
soamiay  fad;  rationing  is  still  in  foroe;  the  cost  ci  living  ccm- 
tinues  to  rise  at  a  more  rapid  rate  even  than  wages  or  salaries; 
niany  a  home  is  not  even  assiued  of  its  daily  lu:ea^ 

11 


INTERNATIONAL  TRADE  CONFERENCE 


Too  much  had  been  expected  of  victory,  he  explained. 
Long  oonoenlratioii  on  that  ooe  objective  had  made  it  an 
altanate  goal,  rather  than  the  starting  point  for  a  retnm  to 
nonnal  activities.  With  the  signing  of  the  armistice,  there- 
fore, came  a  let-down  in  industry.  ''Workers,  pleading  the 
sufferings  they  had  so  bfately  undergone,  olakned  an  eight* 
hour  day.  In  vain  did  eocmomkts  pmnt  out  that  to  reinedy 
the  general  shortage  of  commodities,  it  was  necessary  to 
work  and  increase  production.  No  one  wished  to  overlook 
merits  of  the  worken  or  their  rji^t  to  oonoessionB;  what 
they  d«ianded  was  granted.  McNreover,  the  men  prmnised 
to  do  in  eight  hours  the  work  previously  done  in  ten.  In 
actual  fact,  however,  with  fewer  hours  of  work,  an  alarming 
deoMase  oocaned  in  praduetion." 

Lack  4^  Productkm  CM^  Drmwback 

This  slump  in  production,  Mr.  Schneider  acknowledged, 
had  not  yet  been  corrected;  and  like  admissions  were  made 
by  qpokesmai  for  Belginm  and  Italy,  ^t  they  all  agreed 
that  the  condition  was  only  temporary,  and  that  the  time 
required  for  recovery  would  depend  on  the  degree  of  Ameri- 
ca's oo^ration  and  the  promptness  with  which  financial 
aid  was  forthooming.  They  made  it  plain  that  long-term 
credits  or  outright  loans  would  have  to  be  provided  in  order 
to  overcome  the  existing  depreciation  in  European  exchange 
mid  restore  American  commodity  prices  to  levels  where 
Eurqpe  could  affwd  to  buy.  For  example,  Mr.  Fkrhnand 
Hankar,  Chairman  of  the  Belgian  Mission,  pointed  out  that 
the  high  price  of  dollars  and  the  low  price  of  German  marks 
m  emmpiteA  with  Belgian  francs*  put  a  leYenty  per  cnt 
premium  on  American  machinery — an  impossible  handicap 
for  Belgian  manufacturers,  however  much  they  desired  to 
buy  needed  equipment  in  the  United  States. 

(tee  of  the  surprises  ot  the  Conference,  indeedt  was  the 
unexpected  qptimism  of  the  Belgian  ccmmiksioners  on  the 
outlook  for  their  country.  With  a  war  debt  relatively  small 
and  first  call  on  the  German  indemnity  fund,  her  internal 
iitnatiftn  is  further  huttmsm^  hy  thn  fart  thnt  hnr  mal  mincn, . 
raiboads  and  sted  mills  generally  escaped  destruction  and 

19 


INTERNATIONAL  TRADE  CONFERENCE 


that  40,000  tons  of  machinery  stolen  from  her  factories  have 
been  redain^  from  Germany  smce  ApriL  Her  impstatiye 
needs,  thar^ore,  are  cotton  and  a  few  other  raw  materials, 
and  wheat  at  the  rate  of  100,000  tons  per  month. 

The  British  Mission  also  emphasized  England's  ability  to 
finance  her  nosds  without  qiecial  credks  of  any  sort,  asking 
only  that  her  usual  supply  of  raw  materials  should  be  kept 
up.  France  and  Italy,  on  the  other  hand,  have  so  many  and 
such  varied  requirements  that  several  engineers  and  econ- 
omists were  included  in  thdr  Misskms  in  order  that  their 
situaticms  might  be  adequatdiy  presented  to  the  Conference. 

France,  for  instance,  will  have  to  import  next  year  foods, 
fuels,  cotton,  metals  and  other  raw  and  semi-finished  mate- 
riak  to  the  valne  of  six  or  seven  huncked  mittion  doUara.  If 
the  United  States  is  to  supply  any  great  proportion  ot  these 
imports,  the  present  adverse  rates  of  exchange  must  be  cor- 
rected by  means  of  long-term  credits.  Baron  du  Marais, 
Vice-chairman  of  the  French  Mission  and  diiaetorof  the 
Credit  Lyonnais,  Paris,  suggested  that  ten-year  credits 
would  be  necessary  to  bridge  the  reconstruction  period  in 
France  and  provide  really  ^ective  aid  in  her  incbistrial  and 
financial  restoration.  For  the  succeeifing  years,  ti^  estimated 
needs  are  much  lower  than  for  1920. 

holy  Asks  Hug9  Guaranteed  Loan 

Italy's  wants  are  only  less  than  France's.  Next  year  her 

food  imports  must  reach  $300,000,000,  Commander  Domen- 
ico  Gidoni,  representative  of  the  Italian  Treasury  in  the 
United  States,  told  the  Conference.  For  indispensable  mw 
matenah*  coal  and  madnnery,  his  estmrnte  was  at  least 
$280,000,000  more.  And  the  only  practicable  method  of 
payment  will  be  by  means  of  a  long-term  loan  secured  by 
collateral  and  guaranteed  by  an  Italian  banking  syndicate 
haymgacapitdof$300,0(M)»(M)0anddq[X)sits<tf$ 
It  is  not  lack  of  money.  Commander  Gidoni  insisted,  but  the 
losses  incident  to  the  conversion  of  Italian  lire  into  dollar 
exchange  which  makes  establishment  of  such  loiig4enn 
endits  neoessury  it  Italy  is  to  be  givm  a  fair  chance  in  the 
post-war  era  and  American  exporters  are  to  fill  her  orders. 


13 


INTfiRNATIONAL  TBADS  CONFE&SNCE 


Bolh  European  and  Americaii  Bpmkm  were  agreed  as  to 
came  of  tUe  mySavondUe  radiange  8itiiationh---liie  huge 

excess  of  our  exports  to  Allied  countries  during  and  since  the 
war  and  the  slow  resumption  of  the  return  tide  of  European 
products  to  our  markets.  In  the  ten  mmitihg  before  the 
aimistioe,  Mr.  J.  S.  Alexander,  Obafaman  dt  the  Gonferenoe 
Committee  on  Credit  and  Finance,  pointed  out,  our  exports 
exceeded  our  imports  by  about  $248,000,000  a  month.  In 
January  the  balance  had  risen  to  $409,000,000;  in  April  to 
$442,000,000 ;  in  June  to  the  astonidiing  figure  of  $625,000,000. 
Our  average  excess  balance  for  the  first  eight  months  of  1919 
was  around  $400,000,000  a  month,  though  September  and 
October  saw  notaUe  decreases.  Since  July,  when  the  last  of 
oar  government  credits  to  Affied  countries  were  exhausted, 
sales  to  Europe  have  been  financed  on  a  basis  of  ordinary 
commercial  credit.  The  consequent  accumulation  of  export 
hills  offered  has  cairied  eixdiange  rates  to  a 
has  lakl  a  heavy  extra  tax  on  every  purchase  made  by  any 
one  of  our  recent  allies. 

Europe  Cannot  Stop  Her  Buying 

In  the  ordinary  give  md  take  of  peace-time  commerce, 
with  normal  production  in  European  countries,  this  condi- 
tion would  soon  correct  itself.  Overseas  consumers  would 
buy  less  and  less  as  exchange  rates  went  against  them;  in  the 
end  something  like  an  equnfimtioii  of  imports  and  exports 
(including  the  invisible  items  of  shipping  charges,  tourists' 
expenditures  and  the  like)  would  be  effected.  At  present 
however,  Europe  cannot  sUxp  buying  Amsrioan  foods  and 
tmm  materials  without  condemning  her  people  to  misery  and 
postponing  the  recovery  of  the  industries  which  must  pro- 
duce if  the  old  status  of  balanced  trade  is  to  be  restored. 

It  was  recognition  of  this  double  emosency— of  Emope*B 
depoMknoe  on  America's  slodks,  of  the  corresponding  de- 
pendence of  American  producers  on  European  outlets  and  of 
the  mutual  need  of  some  special  method  of  financing  trans- 
actions necessary  to  both  sides—which  dictoted  the  <^»«g 
of  the  Atlantic  City  Conference.  And  the  C<»iferaice,  con- 
centrating on  the  main  problem  of  finding  a  practicable  way 

14 


INTIENATIONAL  TRADE  CONFERENCE 


of  ftuaiemg  iodispensabie  sales  and  purdiases,  accepted  the 

conclusions  of  the  Committee  on  Credit  and  Finance,  and 
pledged  itself  to  co-operate  in  developing  a  fundamental 
plan  and  carrying  out  its  provisions  as  qieedily  as  pofniihhi 
Outhned  farkAy  for  the  conference  by  Mr.  Bedford  in  his 
dosing  address,  the  Committee's  conclusions  were  as  follows, 
— ^the  complete  report  being  printed  in  Chapter  V,  page  47: 

Credit  and  Finance  Recommendaiiom 

**Fir9t:  After  considering  this  great  problem  from  all 
angles,  the  Committee  states  definitely  its  belief  that  the 
requirements  of  the  nations  rq^resented  here  can  be  md. 

''Second:  No  one  {dan  can  cover  di  cases.  Theprdidemof 
each  nation  is  different  from  the  rest.  Not  only  financial, 
but  commercial,  social  and  political  elements  enter  into  the 
problem.  Its  solution  is  the  leqKmsability  of  America. 

''Third:  The  ifirst  definite  reoommaidati<m  is  the  forniaticn 
of  foreign  credit  corporations  under  the  Edge  Bill. 

"Fourth:  It  is  recommended  also  that  a  permanent  con^ 
mittee  be  immediately  appomted  by  the  Chamber,  repr^- 
smtetiye  of  the  entire  natkm's  intmst  in  meeting  this 
emergency,  to  present  the  case  to  the  investing  public.'* 

"Nor  will  our  people  be  unmindful,*'  the  Conunittee 
urged,  ''of  the  fact  that  men,  wcxnen  and  diOdren^  some 
sections  of  Europe  wiH  die  rA  disease  and  starvation  unless 
help  is  speedily  forthcoming  from  us.  And,  finally,  we  be- 
lieve the  investing  public  realizes  that  the  world  is  suffering 
from  the  contagion  of  social  imrest  and  raifioaysm,  breeding 
a  cKaregard  for  law,  whidi  endangers  the  very  existence  of 
democratic  institutions.  It  is  to  our  interest  to  aid  in  re- 
establishing law  and  order  everywhere. 
'^Looking  to  the  future,  the  prdriem  most  be  approadied 
to  meet  not  only  the  urgent  needs  of  the  moment  but 


1 

• 

radict» 


hnrestment.  Ecofiomio  isolation  is  today  a 

in  terms.  If  we  do  not  now  prepare  to  do  our  share,  we  shall 

another  generation  that  America  has  not 


held  her  proper  | 


•  m  • 


in  wodd  afftirn  " 


1« 


INTEBNATIONAL  TRADE  CONFERENCE 

Id  aooord  wkli  line  Confereiioe's  decision  that  a  pemaiirat 
finance  committee  should  be  estaMiriied,  the  Directors  of  the 

Chamber  of  Commerce  of  the  United  States  and  the  Ameri- 
can Bankers  Association  have  co-operated  in  appointiog 
the  following  groups  (rf  distkiguishad  business  men,  bankers 
and  economists  to  represent  the  various  Federal  Resenre 
districts  on  the  National  Committee  of  European  Finance. 
From  the  general  committee  an  Executive  Conunittee  has 
also  been  chosen. 

National  Committee  of  European  Finance 

District  No.  It  Boston*  Alfired  L.  Allun,  Henry  S.  Dennlton.  Bd^ 
A.  Filene,  F.  P.  FUi,  Lm*  K.  UfRCil*  Obsrlw  Heyden,  George  C 
Lee,  James  R.  MacGall,  A.  £.  Newton,  O.  M.  Sprague,  Philip  Stock- 
ton, Danid  6.  Wing  and  Rdberi  Winsor. 

District  No.  2,  New  York.  James  S.  Alexander,  George  F.  Baker,  Jr., 
A.  G.  Bedford,  Willis  H.  Booth,  William  P.  Bonbright,  William  A. 
Brady,  James  Brown,  C.  R.  Burnett,  Irving  T.  Bush,  Newcomb  Carl- 
ton, Waddill  Gatchings,  E.  A.  S.  Clarke,  Charles  Clifton,  George  W. 
Davison,  H.  P.  Davison,  Clarence  Dillon,  E.  L.  Doheny,  Guy  Emerson, 
Lewis  B.  Franklin,  E.  H.  Gary,  Joseph  P.  Grace,  A.  Barton  Hepburn. 
George  W.  Hodges,  Roy  W.  Howard,  Charles  E.  Hughes,  Otto  H. 
Kahn,  Cornelius  F.  Kelley,  Alvin  W.  Krech,  Thomas  W.  Lamont,  Sam- 
uel MacRoberts,  Alfred  E.  Marling,  W.  A.  McDermid»  John  McHugh, 
H.  A.  Meldrum,  E.  G.  Miner,William  Fellowes  Morgan,  John  R.  Munn, 
William  H.  Nichols,  Lewis  E.  Pierson,  James  H.  Post,  Seward 
Prosser,  Harry  T.  Ramsdcll,  H.  H.  Raymond,  William  C.  Redfield, 
E.  W.  Rice,  John  D.  Ryan,  Charles  H.  Sabin,  William  L.  Sanders, 
Homer  E.  Sawyer,  Mortimer  L.  Schiff,  Charles  M.  Schwab,  Charles  B. 
Seger,  Alfred  H.  Smith,  George  W.  Smith,  James  A.  Stillman,  Charles 
.\.  Stone,  Frederick  Strauss,  Fred  S.  Strong,  W.  H.  Taylor,  William  H. 
Taft,  W.  C.  Teagle,  E.  P.  Thomas,  William  B.  Thompson,  George  T. 
Tiawbridge,  Frank  A.  Vanderlip,  Eliot  Wadsworth,  Tlieodore  F.  Wliit- 
marih  and  Glttence  M.  WooUey. 

District  No.  3,  Hiiladelphia.  CSmrtMiMlM,  E.  Walter  CUak^ 
Thomas  De  Witt  Cuyler,  Alba  B.  John8<Hi,  ¥^l]iam  A.  Law,  E.  EL 

Morris,  George  McFadden  and  Levi  L.  Rue. 

District  No.  4,  Cleveland.  Edwin  C.  Gibbs,  Howard  Heinz,  E.  M. 
Herr,  Myron  T.  Herrick,  Charles  A.  Hinsch,  H.  C.  McEldowney, 
Stephen  C.  Mason,  Samuel  Mather,  A.  W.  Mellon,  W.  S.  Rowa,  Frank 
A*  Saiberling,  John  Sherwin  and  Hamilton  StewarL 

District  Na  5,  Ridimoiid.  John  W.  Graddock,  Albert  D.  Graham. 
Samuel  T.  Morgan,  Thomaa  B.  McAdama,  Waldo  Newcomer  and  R. 
Goodwyn  Rhett. 


16 


INTBBNATIONAL  TRADE  CONFBBBNCK 


District  No.  6,  Atlanta.  J.  Boute,  Jr- J.  P.  G«Ka»  liiUa  R.  I4mt 
and  Robert  F.  Madox. 

Dktikt  No.  7,  Chicago.  Emory  W.  Caark,  Joa^  H.  Delreea.  FVaok 
Gekbor,  Edward  N.  Hncley,  E  D.  HiiBEMrt»  Jamea  In^  Alexander 
Ugge,  Cbariea  H.  MaeDoweD,  E  T.  Meraiith,  Jobs  J.  Ifi^^ 
W.  OXeary,  F.  8.  Feabody,  Gecn^  A.  Ramsey,  George  M.  Reynoldi, 
Julhia  Roaenwald,  John  Scott,  John  G.  Shed4,  B.  L.  Stuart*  F.  a  Wet- 
more,  Harry  A.  Wheeler  and  Thomas  E.  Wilson. 

District  No.  8,  St.  Louis.  David  R.  Francis,  Richard  S.  Hawes, 
S.  L.  Orr,  Festus  J.  Wade  and  F.  O.  Watts. 

District  No.  9,  Minneapolis.  G.  T.  Jaffray,  James  F.  Bell  and  Louis 
W.  HiU. 

District  No.  10.  Kansas  City.  Walter  S.  Dickey,  P.  W.  Goebel» 

Thomas  B.  Steams  and  E.  F.  Swinney. 

Dirtrict  No.  11,  Dallas.  A.  U  GlarlL,  FVank  ILstt,  Jolm  T.  Seott  and 
JobB  H.  Kiriiy. 

District  No.  12,  Saa  FVandsoo.  IVank  B.  Anderaon,  H.  L.  Goibetl 
and  Jamea  J.  Eagan. 

jnjMftm^a^idttMt  Ciuunbof  oi  Commence  Plam 

Before  the  departure  of  the  Allied  Missions,  after  their 
mpnth's  tour  of  the  induatrial  omitm  <tf  the  East  mi  the 
Middle  West,  final  plans  were  also  completed  tot  inaugura- 
tion of  the  International  Chamber  of  Commerce  proposed  by 
the  Committee  on  Permanent  Organization  at  Atlantic  City. 
The  first  meetiiig  of  the  iiew  Chamber  will  be  held  in  Ptois 
next  June.  Meanwhile,  the  prdiminary  organization  wcM-k 
will  be  carried  on  by  a  committee  of  twenty-five,  of  which 
Mr.  John  H.  Fahey,  formerly  President  of  the  Chamber  of 
ComuMfoe,  will  be  chaimian.  The  American  maaHbm  will 
be  named  by  the  Chamber  of  Commerce,  the  various  mMons 
nominating  the  members  for  their  own  countries.  This 
organisation  committee  will  meet  in  Paris  in  May  and  will 
prepare  the  final  draft  of  a  constitution  for  the  International 
Chamber  and  arrange  a  program  for  its  first  meeting. 

The  International  Chamber  will  have  its  headquarters  in 
Europe,  with  a  permanent  staff,  made  up  of  a  Board  of 
Directors,  a  secretary-general  and  a  group  of  executhre  and 
technical  men  representing  each  country.  A  national  bureau 
in  each  country  will  co-operate  with  its  corresponding  group 
at  international  headquarters  and  witt  keep  its  own  miw 


17 


INTERNATIONAL  TRADE  CONFERENCE 


m  toiidh  Willi  ikfrdopmeiits  thioag^icm  Meetings 

will  be  held  at  intervals  of  two  years,  the  Board  of  Directors, 
composed  of  two  men  from  each  country,  meeting  cmnually. 

new  Chamber  of  ComiMfce  will 
be  the  five  natioiis  represented  at  the  Atlantic  City  confer* 

ence — Belgium,  France,  Great  Britain,  Italy  and  the  United 
States.  Other  countries  will  be  admitted  later. 


18 


WHAT    EUROPE    NEEDS  MOST 


n 


What  Europe  ^ieeds  Most 

*^If  you  remain  strangers  to  our  efforts  you  will 
remain  strangers  to  our  ftdure — but  not 

strangers  to  our  sufferings.** 

Mr.  Eugene  Schneider,  Chairman,  French  Mission;  Fresiilent  ftf 
Creusot  Steel  Works,  Paris,  France. 

**The  question  is  not  whether  we  shall  recover.  Recovery 
is  oortain,  and  those  who  put  their  trust  in  us  will  not  be 
deottved.  The  question  is:  How  long  will  it  take  us  to 
recover?  With  your  help,  recovery  will  be  speedy;  without 
yon,  recovery  wiU  be  a  more  difficult  and  lengthy  praoeas. 

**If  you  remain  strangers  to  our  efforts  you  will  remain 
strangers  to  our  f  uture*  but  you  will  not  remain  strangm  to 

our  sufferings.  You  will  know  our  sufferings  and  evils,  which 
will  reach  you  in  spite  of  yoursdves*  in  spite  of  ourselves. 

**I  am  convinced  that  the  United  States  cannot  hold  aloof 
from  Europe.  The  needs  of  £urq[>e  are  great  and  varied*  and 
she  will  remain  for  a  long  time  one  dt  your  best  customers. 

Suppose  that,  on  account  of  the  rate  of  exchange,  we  should 


buying 


you.  How  would  your  industries  be 

affected?  Would  there  not  be  overproduction?  Would  there 
not  be  considerable  unemployment?  Would  there  not  be  a 
wide  economic  disturbance,  with  all  its  consequences^ 

The  gold  heaped  up  in  the  vaults  of  your  banks  must  not 
give  you  too  much  confidoice.  Bear  in  mind  that  gold  is  a 

fiction.  Its  values  arise  from  its  being  a  medium  of  exchange. 


n 

II 

se- 


iMlity.  An  abundance  of  gold  may  be  as  evil  in  its  o 
quences  as  a  scarcity  of  gold. 

Your  interest,  no  less  than  ours,  is  involved  in  the  finan- 

19 


INTERNATIONAL  TRADE  CONFERENCE 


cial  problem  of  the  Old  World,  and  if  only  loans  can  bring 
the  rate  of  mdhange  down  to  a  ffionnhlci  level,  that  should 

be  one  reason  the  more  for  Americans  to  invest  in  such  loans.*' 

Mr.  WUHam  G.  Hmdint,  Ckmmmr,  fMml  Bmmm  Bomdp 

It  is  the  view  of  the  Federal  Reserve  Board  that  the  need 
of  Europe  is  for  long  credits,  and  that  the  situation,  there- 
fore, is  one  which  appeals  to  the  investment  market.  Many  of 
the  problems  whidi  now  confiroiit  European  countries  are 
present  in  an  acute  form  in  this  country,  and  there  is  a  great 
need  for  larger  production,  reduced  consumptioUt  more 
eeonomy  and  thrift  The  liquid  wealth  of  the  world  as  rspm- 
sented  by  goods  and  conmiodities  has  been  reduced  to  an 
alarming  extent  by  reason  of  the  war,  and  the  volume  of 
credit  throughout  the  worid  is  out  of  all  {Hroportion  to  the 
volume  of  goods.  In  order  to  bring  about  more  normal  con- 
ations, it  wiU  he  neosssary  to  restore  the  proper  balance  be- 
tween credits  and  goods.  This  process  will  necessarily  be  a 
slow  one,  but  it  is  essential  that  a  beginning  should  be  made 
and  the  restaration  can  be  made  only  by  rigid  application  of 
the  principle  of  work  and  save. 

''We  must  economize  in  consumption.  There  should  be 
conservation  of  capital  and  credit  in  <nrder  to  have  more  of 
each  available  for  the  processes  of  production  and  distribu- 
tion; but  unfortunatdy  the  kind  of  conservation  most  in 
evidence  just  now  is  the  conservation  of  productive  energy. 

"There  is  no  reason  whatever  to  believe  that  our  Govern- 
ment will— nor,  indeed,  coaU  it  without  the  most  harmful 
inflation — continue  to  make  advances  out  of  its  treasury  to 
foreign  countries.  I  am  convinced,  therefore,  that  the  prob- 
lem of  financing  Europe,  as  far  as  Aihierica  is  concerned,  is 
one  for  private  initiative  and  individual  enterprise. 

"It  is  to  the  mutual  interest  of  Europe  and  America  that 
any  credits  which  may  be  extended  shall  be  employed  in  the 
purchase  of  necessary  articles,  raw  materials,  machinery,  and 


20 


WHAT    EUROPE     NEEDS  MOST 


such  manufactured  goods  as  are  necessary  to  relieve  distress 
and  eoaUe  the  countries  of  Europe  to  resmne  produc^e 
operations.  Credits  for  the  purchase  of  luxuries  should  be 
discouraged,  but  it  is  manifest,  of  course,  that  action  in 
tiUs  respect  diould  be  initiated  in  Europe  rather  than  in  this 
country.** 

Sir  James  Hope  Simpmm^  Manrng/ng  Director,  Bmmk  ef  Liverpool, 
idimpooi,  SngUmd. 

**yfe  came  here  partly  to  tell  you  our  needs;  and  I  am  glad 
to  say  that  England's  needs  can  be  summed  up  in  a  short 
sentence.  We  need  the  continued  supply  of  your  raw  materials 
and  all  we  ask  is  that  you  will  continue  to  show  the  confidence 
in  individual  business  mm  that  you  have  hitherto  shown. 
If  you  found  that  you  could  trust  them  in  the  past,  we  ask 
you  to  trust  them  in  the  future.  I  will  give  you  an  iUustration 
of  the  meaning  of  that.  A  cotton  merchant  importing  into 
Liverpool  cotton  from  the  United  States  has  to  take  into 
oontideration  what  that  cotton  will  cost  him.  He  naturally 
does  that  before  he  orders  the  raw  cotton  from  you,  and  I 
ask  you  to  believe  that  when  he  places  an  order  with  you, 
however  adverse  the  exchange,  however  high  the  price  of  the 
cotton,  that  you  may  assume  that  he  has  made  his  arrange- 
ments for  paying  for  that  cotton,  that  he  would  not  have 
(Mdered  it  unless  he  had  seen  his  way  to  meet  the  bill.  There- 
fore, I  say,  we  ask  that  you  shall  continue  to  supply  your  raw 
material  to  our  individual  merchants  and  importars  in  the 
normal  and  usual  way.  But  we  are  not  asking  on  behalf  of  the 
commercial  commmiiy  qf  Great  BrUainfor  any  other  epemal 
form  of  creiiL'* 

Mr.  James  5.  Alexander,  Chairman,  Conference  Committee  on 
Credit  and  Finance;  President,  National  Bank  of  Commerce, 
New  York. 

**During  the  war,  and  since  the  armistice,  we  have  been 
sending  to  Europe  an  enormous  excess  of  e}q>orts.  In  the  ten 
moodM  pswediog  the  aimislaoe,  so  ftf  as  the  pufalisfaed  figu^ 


21 


INTERNATIONAL  TRADE  CONFERENCE 


go,  our  exports  exceeded  our  imports  by  about  $248,000,000 
a  month.  Since  the  armistice  the  figures  have  risen.  In 
Janiiary  our  caqport  balanoe  was  $409,000,000 ;  in  April  it  was 
$442,000,000;  in  June  it  rose  to  the  astonishing  figure  of 
$62S,000,000.  Exports  in  that  month  were  $918,000,000,  and 
imports  were  $293,000,000.  Om*  average  export  batanoe  for 
the  first  eight  months  of  1919  was  around  $400,000,000  a 
monlii.  All  of  this  excess  and  somethiDg  more  has  bem  in 
our  trade  with  Emt^. 

"  When  the  situation  is  viewed  from  the  other  side,  even  more 
striking  figures  appear.  France  kiq[M3rted  over  12,000,000,000 
francs'  worth  of  goods  in  the  first  six  months  of  1919  and 
e3q[>orted  only  a  httle  over  2,000,000,000  francs'  worth  of 
goods,  leaving  her  an  adverse  bakmoe  of  trade  of  neariy  ' 
10,000,000,000  francs.  Similar  proportions  appear  in  the 
export  and  iipport  figures  of  Italy.  Great  Britain  has  had 
dmring  the  ftrst  months  at  1919  an  adverse  trade 
balance  equivalent  to  something  over  $2,000,000,000. 

''Our  e3q[>orts  to  Europe  have  changed  in  character 
radically  since  1913.  Brfore  the  war  we  sent  Europe  largely 
crude  foodstuff's  and  raw  materials.  Today  we  are  sending 
Europe  very  largdy  foodstuffs  partly  or  wholly  manufac- 
tured, and  finished  manufactures.  In  other  wards,  we  have 
been,  since  the  armistice,  sending  Europe  chiefly  goods  for 
Bumediate  consomption  rather  than  those  thingn  wluch  she 
could  use  setting  her  industries  going.'* 

Mr.  Florimond  Hankar,  Chahrman,  BelgjUm  Mission;  Mr^ctor, 

''You  know  all  too  well  what  happened  to  my  country 
during  the  war.  You  know  dT  our  destroyed  cities  and  towns, 
our  wrecked  industries,  our  workmen  taken  away  into  slavery, 
and  the  miles  of  devastated  f aimiog  and  fruit  lands.  But 
there  is  a  new  story  of  Belgium  beginning.  Belgium's 
wrecked  towns  and  cities  are  being  set  in  order.  Her  roads 
are  being  rebuilt.  Hor  shdl-tom  fidds  are  being  plowed  and 


82 


WHAT    EUROPE    NEEDS  MOST 


planted  and  crops  harvested.  Here  and  there,  manufactur- 
ing plants,  which  were  not  despoiled  of  their  machinery  by 
-  the  invad&ig  foe,  are  q^miting  again*  Throughout  the  land 
there  n  industry — where  industry  is  possible. 

The  people  of  Belgium  want  to  work ;  they  want  to  pro- 
duce. Let  me  say  to  you  that  just  aftw  the  armistice  there 
were  800,000  unemployed  in  Belgium.  And  today  there  are 
less  than  200,000.  The  spirit  of  the  people  is  there,  but  the 
needed  implements  and  supplies  and  some  foreign  credit  are 
lacking.  We  look  to  the  United  States  to  furnish  those  nec- 
essary factum  for  the  de  veloimient  of  Belgium,  for  the  build- 
ing up  of  a  new  Belgium  that  will  be  more  prosperous,  more 
productive  than  the  dd." 

Mr.  Alfred  C.  Bedford,  Chairman,  Executive  ConmUitee  e/  Om^ 
/wanes;  GMmim,  SUmimrd  OU  Cem^mtf,  Nem  York. 

'*Some  of  the  early  econmnists  used  to  teach  that  a  nation 
grew  wealthy  in  proportion  to  the  difference  between  the 
amount  of  goods  it  sold  to  other  nations  and  the  amount  it 
purchased  from  them.  In  othor  w<»ds,  the  siae  of  the  export 
'balance  of  trade'  was  the  measuring  rod  of  national  progress. 
Later,  Adam  Smith  and  those  who  followed  him  taught  that 
a  nation  miwt  not  only  sdl  to  the  world  but  that  it  must  buy 
from  the  world,  and  that  the  ideal  situation  was  not  repre- 
sented by  a  huge  'balance  of  trade,'  but  by  a  large  volume  of 
trade  at  a  virtiud  equilifariimii  between  what  was  sold  and 
what  was  bought. 

"This  war  has  taken  us  a  step  further  in  the  developaient 
of  cur  thou^ts.  We  now  realixe  that  it  is  not  only  necessary 
to  sell  to  the  nations  of  the  world  and  to  buy  from  the  nations 
of  the  world,  but  that  we  have  a  direct  interest  in  actually 
promoting  on  its  own  account  the  prosperity  of  the  world,  not 
alone  of  that  part  of  it  comprised  within  our  national  boun- 
dary Imes,  but  quite  as  ttmck  the  prosperity  of  lands  remote 
from  our  own.  In  a  peculiar  sense  is  this  true  of  our  immedi- 
ate interest  in  the  reconstruction  and  revival  of  the  lunawmnr 

2S 


INTEBNATIONAL  TRADE  CONFERENCE 

heaUh  and  prosperity  dt  those  oounlries  who  have  been  our 
AUies  during  the  war. 

Mr.  F.  O.  Watts,  President,  First  National  Bank,  St.  Louis,  Mo. 

''What  is  the  esteiit  and  what  is  the  nature  of  Eut^m's 

needs?  Europe  has  had  far  too  modi  in  the  way  of  goods 
from  us  since  the  armistice.  We  have  sent  her  a  relatively 
small  percratage  ci  raw  materials.  The  great  bulk  of  our 
exports  have  been  finished  manufactures  and  foods,  articles 
for  inmiediate  consumption  rather  than  those  which  could 
be  used  in  further  tvoducticMi.  Luxuries  should  not  go  and 
many  of  the  goods  which  we  consider  the  comforts  of  life  are 
of  doubtful  advantage.  Food  in  adequate  quantities  Europe 
must  have.  Raw  materials  Europe  must  have.  Our  FVsndi 
firiends  teU  us  that  they  do  not  expect  or  need  machinery. 
They  plan  to  produce  raib  for  e(i|M^  They  plan  to  prodnoe 
locomotives.  As  far  as  possible,  Europe  should  produce  her 
own  manufactured  goods  and  should  produce  manufactured 
goods  far  export.  No  doubt  considerable  madiinery  is 
needed  by  certain  of  the  countries  to  the  east  of  Germany, 
where  the  destruction  has  been  great  and  where  establisb- 
ments  for  producing  machinery  are  less  adequate  and  in  less 
satisfactory  condition." 

Mr.  William  C.  Redfield,  Secretary,  Department  oj  Commerce, 
Washingjtan,  D.C. 

'The  dtuaticm  is  even  worse  than  I  thoag^t  at  tha*  time, 

for  I  did  not  then  recall  what  ought  to  be  really  in  your 
imnds  as  business  men;  that  when  wt  say  we  are  aocuBHh 
lating  now  a  balance,  as  we  call  it,  in  our  favor  of  about  few 
'  billion  dollars  a  year  as  things  are  now  running,  that  balance 
is  ipedkoned  in  American  dollars  at  par.  If  it  is  reckoned  in 
the  currencies  in  which  it  must  be  paid  by  those  who  owe  it, 
you  must  add  something  like  twenty  or  twenty-five  per 
cent.  So  the  four  bilHons  of  dollars  in  our  favornow,redLoned 
from  the  standpoint  from  which  it  must  be  considered  by 
UMist.  of  Eraopct  is  the  equivalent  of  about  five  biiyons. 


4 


1 


WHAT    EUROPE    NEEDS  MOST 

''As  I  see  it,  the  obligations  d  the  wosld  to  the  United 

States  are,  as  a  whole,  understated.  The  figures  are  so  very 
large  that  perhaps  one  is  afraid  to  put  them  where  they 
really  are.  But  it  is  just  as  well  for  you  and  me  to  get  the 
facts  as  they  seem  really  to  be,  in  order  that  we  may  know 
just  what  the  problem  is  with  which  we  have  to  deaL  Theten 
billions  of  ddiyt  due  us  firom  dvroad  is  government  debt 
To  that  must  be  added  soon,  if  not  at  once,  the  amount  of  a 
hiUion  and  a.half  dollars,  bemg  ^HMraodmately  tbree  years* 
hiterest  on  this  great  sum,  which  it  is  inrobable  we  shall  fund 
for  the  nations  abroad,  making  the  total  government  loan 
eleven  billion  five  hundred  imllions  when  so  rediOBed.  To 
that  must  be  added  an  accumulating  balance  at  the  present 
rate  of  four  billions  per  annum  on  merchandise  account*  mak- 
ing a  total  of  fifteen  and  a  half  byiions.  To  that  further  most 
be  added  another  biUion  by  reason  of  the  diflference  of 
exdiange  of  which  I  have  just  spoken.  So,  if  wo  stata  the 
proM^  as  one  whidi  involves  the  earlier  or  lat^  meeting  of 
obUgations  of  at  least  fifteen  billions,  we  shall  know  pretty 
well  wh^t  we  ham  to  fim.'* 

Mr.  Albert  E.  Janssen,  Director,  National  Bank  qf  Belgfum; 
Prqfesior,  University  qf  Louvain,  Belgium. 

**What  we  must  have  in  the  future  is  long-time  credit — ten 
to  twenty  years.  As  late  as  February,  the  exchange  rate  on 
the  dollar  was  five  francs  sixty-six.  It  mounted  to  as  hi^  as 
nine  francs,  and  now  is  about  eight  francs  fifty,  which  is  a  70 
per  cent  increase  over  the  normal  rate.  Uncter  such  condi- 
tions, it  is  natural  we  should  buy  in  the  United  States  only 
the  raw  materials  and  food  products  which  are  absolutely 
needed  by  us;  for  the  reason  that  the  inciease  of  70  per  cent 
in  exchange  rate  is  equal  to  a  70  per  cent  export  tax  which 
slu^uld  be  imposed  by  the  United  States  on  exports  to  my 
country.  We  are  all  interested,  you  eaad  we,  in  reducing  the 
price  of  the  dollar  so  that  trade  may  get  back  to  normal.  The 
only  nMMs  by  which  the  pcioe  of  the  doUar  ffw  he  le^uoad 


INTERNATIONAL  TRADE  CONFERENCE 


oonrists  in  the  credit  which  the  Umted  States  ehould  allow 

to  Europe  for  some  years.  You  must  do  today  for  us  what  we 
have  done  for  you  in  the  past." 

Mr.  Jlrecfctiirlrfig  Lmg,  AmiOmni  S&am$arf,  Ikfmiumm  €f 

''Today  thoreiaadifferaMe.  Our  Mfe  ie  complicated.  Our 

commerce  is  intricate,  and  its  channels  vary.  We  produce 
m<»re  than  we  need,  but  not  all  of  the  things  we  cooeiBiie. 
We  export  mndi  and  knport  a  variety  of  the  products 
other  lands  and  of  other  cUmes.  Such  things  as  balances  of 
trade  have  come  to  the  intimate  acqpiaintaiioe  of  every 
banker  and  every  large  producer,  and  have  made  it  the  con- 
cern of  each  that  good  relations  of  one  government  with 
0th»  govemments  shall  be  cultivated  mai  maintained. 
Dij^kmacy  has  been  popularized,  in  that  its  practice  has  a 
direct  bearing  on  the  ordinary  aiFairs  of  life. 

''AH  this  demonstrates  condusivdy  that  the  isdatkm  of 
former  days — a  condition  which  prevailed  in  every  country — 
has  been  exchanged  for  a  national  interdependeooe.  The 
isdation  was  physical.  Space  and  the  lapse  of  time  created 
it.  The  interdependence  is  mechanical,  for  by  such  agencies 
have  qiace  and  time  been  reduced  in  conseqimice.  The  very 
processes  of  reduction  have«ade  it  the  concern  of  those  who 
are  most  affected  by  it,  and  the  mien  who  do  the  bartering 
and  setting  and  tranqMMrting,  the  dealers  in  eidiange  and. 
the  more  numerous  producers,  the  spinners  and  toilers,  are 
brought  face  to  face  with  diplomatic  situations  which  may 
affect  adversely  thdr  means  of  fivdihood. 

"Today  it  is  a  matter  of  business  that  there  shall  be  the 
fewest  possible  number  of  disturbances  to  prqdiiiliin  and  to 
oommeroe.  It  is  equally  a  matter  of  business,  and  for  business 
men,  to  devise  that  conditions  at  home  and  abroad  shall  be 
soch  as  to  keep  qpen  the  mml  processes  of  prodnctioii  and 
trade.  Labor  and  capital  have  an  interest  in  common  with 
the  government,  for  each  will  be  affected  in  the  same  degree." 

26 


WHAT     EUROPE     NEEDS  MOST 


Mr.  Hommr  L.  FcrgiiMMit  JhmUmU»  Ommkm  of  Commmrtm  9§ 

the  VtHted  States,  PresklerU,  Nei^pori  Nem  SU^uOdlmi  Com$^ 

pany,  Newport  News,  Va. 

''We  have  asked  you  hm  to  meet  business  mm  from  all 

over  this  country,  representing  every  line  of  industry,  and 
you  are  here  to  discuss  with  Uiem  our  mutual  problems — 
not  only  yours  of  Europe,  but  ours  of  America.  We  feel  sure 
tfiat  tbegreat  tisskof  gettingthewiMrld  on  its  businessfeet  again 
is  no  greater  than  the  task  which  has  been  met.  It  cannot  be 
more  difficult  than  the  tremendous  struggle  we  have  gone 
through.  All  of  the  forces  ot  govemments  and  all  of  the 
credits  of  gOYemnmits  were  enlisted  to  save  the  civiliied 
world.  To  do  this  the  governments  dropped  the  reins  of 
business.  These  governments  are  now  attending  to  their 
normal  functions,  wad  it  remains  for  the  business  men  of 
the  world,  as  rqiresented  by  your  Missions  and  by  the  men 
come  here  to  meet  you,  to  help  get  this  old  world  of  ours 
back  again  into  the  normal  paths  of  peace  and  of  production. 

''We  hope  that  in  our  relations  with  you  aod  in  our  inter- 
course wilii  you,  to  typify,  in  some  small  degree,  the  vfini 
of  our  soldiers  who  fought  with  your  soldiers  and  showed 
that,  even  though  their  languages  and  national  training  and 
circumstances  might  not  be  the  same,  yet,  when  the  minds 
and  hearts  of  men  are  united  by  the  same  purpose,  they  can 
work  together  for  the  common  good  of  aB  and  win  in  that 
way  the  triumphs  of  peace  as  well  as  the  triumphs  of  war.*' 


97 


s 


INTERNATIONAL  TBADB  CONFERENCE 


•  III 

Helping  £urope  to  Buy 

**There  is  world-wide  scarcity  of  capital:  for  jii>e  yews 
Ike  world  has  devoted  its  energies  to 
the  destruction  of  capital.*^ 

Mr.  C  IBsdtfoirdp  Chakmmn,  Emeutius  Omnnditm  €f  Cm-' 
/MfMt;  Chairman,  Standard  Oil  Company,  New  York. 

""This  oonfcrenoe,  if  it  aooomplishes  nothing  else,  will,  I 
hope,  result  in  giving  to  the  business  mea  of  the  great  nations 
hflfe  iqpresoited  BMxe  than  ev«r  befon  a 
A  lealizatkm  tJiat  business  in  the  future  will  call  for  the 
highest  standard  of  efficiency  and  co-operation,  will  make  for 
tiie  destruction  of  ignorant  selfinhnew  and  merely  personal 
profit,  and  will  be  recognized  to  have  succeeded  just  to  the 
extent  that  it  makes  men  of  all  i^tVm  realize  their  inter- 
depeiidenoe  one  upon  the  other,  and  acts  upon  the  faith  that 
an  intelligent  self-interest  commands  upon  the  part  of  each 
of  us  an  active  regard  for  the  happmeai  and  wMn  of  every 
land  on  this  sindl  earth. 

''At  a  critical  moment  of  the  war,  Ckmencean  said  that 
victory  would  lie  with  the  side  which  hdd  out  the  last  quarter 
of  an  hour.  But  at  the  moment  when  the  armistice  was 
signed  Chwadame,  another  Frenchman  and  an  authority  on 
international  rdations,  very  aptly  remarked:  *The  last 
quarter  of  an  hour  is  b^inning  now/ 

**Tlie  end  the  war  has  been  only  the  beginning  of  strife 
and  we  must  face  the  problems  as  they  come  with  stead- 
fastness, courage,  and  with  an  open  mind  in  the  realization 
that  only  those  nations  can  remain  or  become  great  who  are 
willing  to  face  and  solve  these  problems  and  who  do  not  hesH 
tato  to  endure  m  order  that  find  success  may  be  achieved/' 


fg 


HELPING     EUROPE    TO  BUY 


Mr.  Myrni  T.  HsrHck,  Chairman,  Union  Carbide  and  Carkan 

Company,  Clov^kmd,  Ohio. 

''The  establishment  of  im  ii^emitional  credit  sygtem 

is  absolutely  essential  for  the  restoration  of  the  world's 
economic  equilibriumu  Without  the  aid  and  co-operation  of 
the  United  States  this  cannot  be  accomidished.  Inthesdu- 
tion  of  this  problem,  the  United  States  is  as  necessary  as  she 
was  in  the  wmimig  of  the  war. 

"We  were  late  in  recognizing  our  manifest  duty  then;  let 
us  compensate  now,  as  far  as  possible,  for  our  tardiness  then. 
Let  us  not  delude  omselves  as  before  with  the  idea  that  what 
we  do  in  this  direction  is  simply  helping  Europe,  for  it  is  just 
as  necessary  for  our  proqierity  weU4wng  that  this 
eeonomic  structure  be  restored— -not  mily  restcned,  but  built 
on  new  lines — as  it  was  for  the  war  to  be  won. 

'VBut  the  proiKisltion  to  be  laid  before  the  AnMnbm  peopfe 
by  the  Convmtion  has  a  far  deeper  significance  than  a  mere 
banking  proposition.  The  rearing  of  this  new  credit  struc- 


ture is  just  as  mudi  our  job  as  it  is  that  of  the  nations  so  ably 

represented  here.  Our  stability  and  our  future  prosperity 
depend  upon  it.  We  have  the  resources,  thi"  brains,  and  we 
have  tike  patriotisBL  What  we  need  now  b  organization  and 
quick  action/* 

Mr.  William  G.  Hardini,  Gayemor,  Faderal  Meserm  Board, 
Washinffon,  D.C* 

...» 

- «  * 

'"The  Federal  Beserre  Board  appreciates  the  importanbe 

from  every  point  of  view  of  promoting  our  foreign  trade,  and 
believes  that  the  banks  of  this  country  generally  understand 
that  longer  credits  than  can  safety  be  granted  by  banks  are 
necessary  if  we  desire  to  export  our  surplus  of  essential  com- 
modities. .  Under  the  Fedual  Beserve  Act^  national  banks 
having  a  capital  and  surplus  of  not  less  than  one  million 
dollars  are  authorized  either  to  establish  branches  in  foreign 
oonntiiea  or  to  take  stock  to  the  extent  of  ten  per  cent  of 
their  capital  and  surplus  in  banks  or  corporations  prindpally 


29 


INTERNATIONAL  TBADE  CONF£B£NC£ 


aigaged  in  foreign  banking.  Under  a  raoent  amendment  to 

the  Act,  all  national  banks,  regardless  of  their  size,  are 
authoriied  ta  subscribe  not  more  than  five  per  oent  of  their 
capital  and  surplus  to  the  stock  of  corporations  principally 
engaged  in  such  forms  of  financial  operations  as  are  necessary 
or  oonduoive  to  the  export  goods. 

*'The  Edge  Bill,  wUch  has  recently  passed  the  Senate  and 
which  has  been  reported  favorably  by  the  House  Committee 
on  Banking  and  Cifffency,  provides  Idr  the  Federd 
tion  of  foreign  banks  and  of  corporations  to  finance  foreign 
business.  The  latter  are  authorized  under  the  terms  of  the 
biH  to  issue  their  own  obligations  or  debentures  against 
securities  acquired  abroad  which  they  may  offer  to  the 
investing  public  These  corporatic^is  will  be  under  the  gen- 
eral supervision  of  the  Federal  Reserve  Board;  as  thdbr  funds 
will  be  drawn  directly  from  the  investment  market,  their 
operations  wffl  not  inqpair  the  liquidity  of  the  assets  of  the 
Federal  Reserve  Banks." 

Mr.  DmMidco  Gidoni,  RipMmntuHfm  ci  Italian  Traaniry  In 
VmUad  Smm»  Nam  Ywrk. 

''The  state  of  exchange  is  one  of  the  gravest  problems  of 
I)eace.  It  pictures  graphicaOy  a  naticm's  finandal  condition, 
of  which  it  is  the  most  visible  sign.  A  depreciated  exchange 
is  directly  iiqurious  to  a  ooimtry  in  its  oooomardal  relations 
with  other  countries  whose  exchange  is  at  a  premium.  When 
the  rate  of  exchange  passes  the  'gold  point'  and  there  is  no 
possibility  of  meeting  external  debts  in  gold,  so  as  to  bring 
exchange  to  the  normal,  a  further  depreciation  cannot  in 
any  effective  way  be  halted. 

'There  is  me  initid  cause  for  tiiis  depreciation  below  the 
'gold  point,'  that  is  the  inability  on  the  part  of  the  country 
wUdi  has  depreciated  currency  to  pay  its  foreign  debts 
either  in  gold  or  commodities  ctf  trade.  Hie  degree  isi  de- 
preciation depends  upon  material  and  psychological  factors. 
The  material  fMStors  are  the  amoimt  of  p^ier  currency  and 


SO 


HELPING     EUROPE    TO  BUY 


gold  reserves,  the  country's  d^t»  its  balance  of  trade.  Hie 

psychdlogical  factors  are  the  valuation  of  economic  resources, 
political  and  social  conditions,  latent  national  foroea, 
the  forecast  of  future  proqpects. 

**This  is  why  countries  which  are  all  equally  unable  to 
settle  their  foreign  liabilities  in  gold  or  goods,  and  so  are  all 
technically  on  the  same  monetary  plane,  still  differ  in  various 
degrees  from  the  depreciation  of  their  currencies.  The 
pound  sterling,  for  instance,  has  dqmciated  mnch  less  than 
the  franc,  because  both  material  and  psychological  factors 
are  favorable  to  England,  where  a  rapid  return  to  the  normal 
is  more  certain.  Conqiared  with  the  poud  stetlmg  and  with 
the  fraiic,  Italian  exchange  has  fallen  to  a  lower  level  becau3e 
of  certain  less  favorable  factors." 

Mr.  WUHam  C.  Rad^kU,  Sacratary,  Departmani  of  Oatmmerce, 
Wasidntton,  D,C. 

'"How  are  we  to  deal  with  the  core  of  this  whole  problem? 
That  core  is  this:  To  help  others  who  owe  us  large  sums  into 
a  position-where  payment  will  not  be  burdensome,  and  mean- 
while to  provide  them  in  addition  with  the  thousands  of 
things  they  need  but  for  which  at  the  moment  they  have  not 
the  means  to  pay.  That  is  a  problem  worthy  of  the  very  best 
thought  of  the  American  business  man.  Consider,  that  at 
the  opening  of  our  part  in  the  war  two  years  ago  in  April, 
there  were  considered  to  be  but  three  hundred  thousand 
investors  in  securities  in  the  United  States,  and  that  over 
twenty-one  million  persons  becune  subacribera  to  Liberty 
Bonds.  That  was  a  revolution  in  thought.  Now,  just  such 
a  revolution  in  thought  has  yet  to  take  place  in  the  business 
circles  befcre  we  shall  get  the  means  of  dealing  adequately 
with  this  fraternal  problem.  We  have  not  been  accustomed 
to  buying  the  securities  of  foreign  lands,  and  these  is  no 
to  educate  one  hmidred  and  ten  mOlicm  people.  The  prob- 
lem is  too  urgent;  the  needs  are  too  great;  they  are  here. 
We  have  got  to  do  something  far  more  elective  than  that. 


SI 


INTERNATIONAL  TRADE  CONFERENCE 


^It  has  seemed  to  me  that  a  new  organization  mmt  be 
created,  or  organizatioos  one  or  more  of  a  kind,  as  yet  novel 
to  oar  {Kility,  but  yet  glowing  aotm^  I  do  not 

wholly  agree  with  some  of  my  wise  and  conscientious  friends 
when  they  say  that  our  banka  are  able  to  deal  witb  it.  I 
doubt  it  ibmt  is  either  correct,  or  wise.  What  we  must  do  if 
we  can  is  to  bring  the  entire  credit-giving  power  of  the 
oountry  to  bear  on  this  pfobkia.  We  plaoed  our  gieat  loans 
because  every  household  became  a  partaker  in  them.  We 
must  place  our  great  credits  on  the  same  principle.  I  hope 
#e  abatt  get  an  oiganiiatkw  whiA  shatt  conribine  within 
the  bamker,  the  manufacturer,  the  merchant,  and  every  other 
group  of  our  people,  which  shall  represent  the  whole  round 
qshere  of  American  Kfe  and  American  econoniiic  power. 
Because  it  does  that,  it  may  be  made  the  center  of  an  appeal 
in  every  village  in  the  country,  and  in  that  way  we  can  get 
the  very  heart  and  mind  of  the  United  States  with  you  and 
for  you." 

Mr.  W.  a  Waii$,  FmsldmU,  Win$  Nmikmtd  B&nk»  Si.  Loub,  Mo. 

' '  Eurqpe  lias  hem  used  to  a  low  intmst  rate  at  home,  and 
it  C(Mnes  with  a  distinct  shock  to  many  of  the  finanders  and 

industries  of  Europe  to  learn  that  higher  rates  must  be  paid 
in  the  United  States.  'Mm  rule  is  that  interest  rates  in  rap- 
idly growing  countries  are  high,  and  that  in  rich  and  well- 
developed  countries  they  are  low.  A  borrowing  country,  too, 
must  eikpect  to  pay  mora  tor  money  obtained  in  a  foreign 
country  than  the  rates  ruling  in  the  loaning  country.  An 
investor  naturally  imfers  to  place  his  funds  at  home.  Interest 
rates  and  security  bdng  equal  he  will  invest  at  home.  He 
will  invest  with  corporations  with  whose  personnel  he  is  ac- 
quainted and  with  whose  operatiom  he  is  iuny^  It  is  an 
inevitable  economic  fact  that  a  borrowing  country  must  pay 
more  than  the  market  rate  for  money  on  a  large  scale. 

''Further,  there  is  a  great*  world-wide  soardty  of  capitaL 
The  world  has  devoted  its  energies  for  the  past  five  years  to 


HELPING     EUROPE     TO  BUY 


the  destruction  of  capital — Europe  has  done  it  and  we  have 
done  it.  There  is,  therefore,  an  iinp«y^f4ffltf^  Am^nH  for 
capital  in  the  United  States,  and  interest  rates  on  long-time 
investments  are  correspondingly  high.  The  rates  which  must 
be  offered  American  investors  in  connection  with  European 
investments  must  be  high  enough  to  tempt  the  additional 
saving  which  will  be  required  if  America  is  to  supply  capital 
both  for  her  own  and  European  neechu  If  we  want  the  inves- 
tor to  save  more  than  he  is  now  saving,  we  must  offer  him 
additional  inducement  to  do  so." 

*  /rniat  Hop€  Shnpion,  Managing  Director,  Bank  of  Liverpool, 
Uverpool,  EngkukU 

"And  now  that  the  curtain  has  been  rung  down  on  the  war, 
how  do  we  stand  in  Great  Britain?  Our  pre-war  national 
dd>t  was  about  three  and  one-half  Inlliaa  dollars,  ft  is  now 
thirty-eight  billion  dollars.  Of  this  we  owed  at  the  beginning 
of  the  war  nothing  abroad.  We  now  owe  seven  biUioo  dcUaia. 
But  against  the  seven  billion  we  have  to  set  this  fact:  There 
is  owing  to  us  by  our  own  colonies  and  by  foreign  countries 
about  nine  billion  dollars.  I  am  not  authoriaed  to  say  any- 
thing on  behalf  our  Government,  but  speaking  as  a  citizen, 
a  private  citizen  of  the  British  Empire,  I  do  not  hesitate  to 
say  that  while  we  shall  require  tune  to  pay  our  debt  it  will 
be  paid.  The  nation  is  determined  to  set  our  finances  in 
order  and  to  foot  the  bills,  as  was  said  in  our  House  of  Loids 
yesterday,  the  nation  must  follow  the  road  of  sacrifice  and 
hardship,  but  in  the  road  to  honor  and  safety. 

''Finally  we  are  faced  with  very  heavy  ti^x^tMMi.  I  thin^ 
that  every  (me  in  England  will  be  poorer  than  he  has  been. 
At  any  rate,  during  the  rest  of  my  business  life  I  cannot  see 
any  chance  of  relief  for  the  taaq[Miyw.  But  I  feel  that  if  we 
are  to  OBurry  out  as  I  know  we  will,  what  I  have  called  the 
setting  in  order  of  our  national  every  one  of  theae 

tasq^yera  will  have  to  bear  a  greater  burdm  than  he  has 
ever  contemplated,  and  a  greater  burden  than  he  cw  with 


3S 


INTERNATIONAL  T&ADE  CONFERENCE 


oomforlbe«r.  HoifVWt  it  wiU  liave  to  be  iMXiie  and  it  will 

be  borne,  I  hxsfjpe^  with  lAeerfuIness  and  resignation. 

"'Sununing  up  the  whole  thing — ^I  try  to  make  this  balance- 
dieet  in  an  infomal  way— ^aniiiiiiig  op  all,  I  think  it  comes 
to  this:  That  we  are  justified  in  the  strong  conviction  that 
we  shall  recover  from  our  war  damage,  that  we  shall  recover 
faiily  rapidly;  but  it  will  entMy  depend,  as  Mr.  Alexander 
said,  upon  working  and  saving  upon  the  part  of  individuals. 
I  fieel  with  ooniMience  that  a  country  which  has  already  paseed 
through  go  niany  severe  criees  win  not  soocnimb  to  th^ 
crisis  and  that  we  may  look  forward  with  couiideQce  to  our 
economic  future." 

Mr.  James  S,  Alexander,  Chairman,  Conference  Committee  on 
Credit  and  Finance;  Fre$idmt»  National  Bank  c|f  Commerce, 
New  York. 

^But  we  know  our  friends  from  Europe  well  enough  to 
believe  that  they  very  generally  recognise  the  fact  that  it  is 

best  for  them  to  get  money  on  a  basis  that  is  determinable 
and  permanent.  Our  good-will  insures  our  making  every 
possiUe  ^ort  towards  reaching  a  speedy  solution  of  present 
uncertainties.  But  the  solution  itself  must  rest  not  upon  a 
basis  of  sentimrat»  but  rather  upon  a  foundation  of  economic 
fact,  of  common  sense,  and  sound  commercial  practice. 

**The  nations  of  Europe  want  credit;  but  they  are  not  seek- 
ing primarily  credit  for  today,  but  rather  a  ftmdameotal 
credit  understanding,  a  system  of  credit  which  they  can  trade 
upon  and  make  commitments  iqxm.  They  want  to  know  they 
can  count  on  hdp  based  not  upon  a  generous  impulse  <^  the 
moment,  but  upon  the  more  permanent,  if  more  impersonal, 

desire  of  men  to  trade  with  one  another  on  the  basis  oif  mutual 
profit  and  satisfaction.  This  is  a  staff  they  can  lean  upon. 
Any  commercial  arrangement  grounded  solely  upon  the  un- 
commenaal  and  shifth^  element  of  good-wiU  and  fi^^ 

timent  no  matter  how  firm  and  true  that  sentiment  may  be, 
will  in  the  end  prove  unsatisfactory/* 


S4 


HELPING    EUROPE    TO  BUY 


Mr.  Dwight  W.  Morrom,  J.  F.  Mor^  U  Gatngm^  Nem  Yarlu 

''Can  the  people  of  this  country  extend  $2,000,000,000  of 
credits  to  Europe  in  a  single  yearP  That,  to  my  mind, 
involves  two  distinct  questions:  First,  will  the  people  of  this 
country  have  that  much  capital  to  lendp  Second,  will  they 
be  able  to  find  people  in  Eurqpe  to  whom  they  are  willing  to 
lend  itP 

''The  first  questicm  is  fimdamentally  a  questioii  oC  our 
own  ability  to  produce  and  to  save.  The  central  figure  in  that 
part  of  the  problem  is  not  the  manufacturer  as  such,  nor  the 
producer  of  raw  material  as  such,  nor  the  banker  as  sudi, 
but  the  man  who  saves. 

'"The  one  fundamental  thought  that  we  must  hold  on  to  is 
that  while  there  will  be  many  min(»r  actors  in  the  great  enter- 
prise of  the  restoration  of  Europe,  the  indispensable  man  in 
that  enterfMrise,  the  hero  of  that  ent^nP™e,  will  be  the  plain, 
old-fashi(nied  man  who  spends  less  than  he  produces  and 
thus  creates  the  fund  without  which  all  of  the  plans  for  res- 
toration of  Europe  must  come  to  naught.  He  may  be  ridi  or 
he  may  be  poor.  He  may  be  a  banker,  or  a  merchant,  or  a 
school  teacher,  or  a  wage-earner.  But  he  must  be  a  saver. 
For  it  will  be  true  in  the  future,  as  it  has  Yueea  in  the  past, 
that  there  is  only  one  way  for  the  capital  fund  to  increase, 
and  that  is  by  the  accumulation  of  savings." 

Mr.  Norman  Hm  DawU.  Frwtidenim  Truet  Camaane  id  Cukm.  Nem 
¥otk. 

"'The  foreign  exdumge  situation,  of  comrse,  lias  increased 
the  difficulties,  but  that  is  a  question  that  cannot  be  properly 
settled  by  abnormal  and  economically  unsound  methods.  It 
seems  to  be  the  general  impresslcm  that  the  present  low  rates 
of  sterling,  firanc,  and  lire  exchange  have  been  caused  by  the 
sale  of  exchange  for  dollars  required  to  covar  purrhsaes  hers. 
Such  is  not  the  case.  England,  France,  and  Italy  have,  up  to 
the  present,  covered  most,  if  not  all,  of  their  purchases  here 
with  dollars  obtained  thvoui^  credits,  and  not  by  the  safe 


I 


INTERNATIONAL  TRADE  CONFERENCE 

of  their  exchange.  The  United  States  Treasury  has,  since  the 
armistice,  loaned  to  the  Allied  gOYemments  approximately 
12,500,000,000  to  oo¥er  their  oommitiimits  and  pindiafles 
in  this  country,  and  the  War  Department  has  sold  to  them  on 
credit  materials  to  the  value  of  about  $S00»000»000. 

*"Tlm  assistaiioe  has  gone  far  tofwaid  supplying  their 
urgent  requirements  and  to  carry  them  through  this  transi- 
tory period,  and  has  aided  most  materially  in  avoicfing  the 
necessity  of  selling  their  exchanges  for  dollars.  The  present 
low  rates  in  their  exchanges,  therefore,  have  not  been  caused 
hy  the  pnrdtiaae  of  dollars,  but  by  the  sale  of  theur  exchange 
for  other  currencies.  The  present  rates  of  exchange  reflect 
the  sales  of  exchange  in  other  markets,  a  liquidation  of 
neutral  balances  during  the  war,  a  certain  amount  of  dis- 
trust in  the  world's  poUtical  stabiUty,  a  considerable  deficit 
in  the  present  trade  and  financial  balances,  and  a  cortain 
inequality  in  dixnestic  and  ftrj^Tirj^l  ccxiditicHis.** 


86 


WHAT'S  BACK  OF  EUROPE'S  CREDIT? 


\ 


IV 

Wliat's  Back  of  Europe's  Credit? 

^^IJ  you  want  to  know  what  a  nation  will  do  when 
put  to  a  testj  ask  what  it  ha»  done  in  the  part* 
Even  obtuse  Germany  knows  that.** 

Mr.  Dwight  W.  Morrow,  J.  F.  Morgan  &  Company,  New  York. 

When  we  think  of  a  Europe  with  much  of  its  accumulated 
savings  gone,  we  must  not  forget  that,  with  the  war  over,  char- 
acter and  cafMMaty  and  skill  in  organization  will  still  be  the 
qualities  by  which  the  worth  of  nations  will  be  judged. 

''Have  the  nations  of  Europe  that  character  and  capacity 
and  skill  in  organization  which  will  attract  our  increasuig 
suppUes  of  accumulated  savings?  Can  any  one  of  us  who  is 
fandliar  with  their  whole  history  doubt  itP  Can  any  one  of 
OS  who  has  watched  thdr  conduct  during  the  mcMre  than  four 
years  of  war  doubt  it?  In  my  opinion  the  same  energy  and 
capacity  that  they  have  shown  during  the  war  will  be  directed 
to  the  performance  of  the  great  task  that  confronts  them. 

'They  come  to  us  now,  not  seeking  charity  on  account  of 
their  weakness  but  asking  us  in  our  strength  to  co-opmite 
with  them  in  their  strength  to  rebuild  and  restore  their  pro- 
ductive capacity.  Their  own  capital  fund  will  be  gradually 
restored  by  fresh  savings  and — ^what  is  more 


those  savings  will  be  protected  by  their  own  free  govern- 
ments. The  same  courage  and  energy  and  thrift  which  will 
create  and  protect  their  own  savings  will  attract  and  protect 

savings  of  foreign  countries/' 

Sir  James  Hope  Simpson,  Managing  Director,  Bank  of  Liverpool, 
Uuefpooi^  KnglamI 

**With  regard  to  the  general  conunercial  conditions  of  Great 

Britain:  We  have  lost  five  years  of  economic  development  of 

the  ooontry ;  for  five  years  tiie  otdSmary  rciplaotiwent  cl  woro- 

»7 


> 


INTERNATIONAL  TBAD£  CONFERENCE 


oat  materials,  madunery  and  so  on  has  had  to  go  by  the 

board.  The  replacement  of  merdmnt  ships  has  had  to  stand 
oiVir.  The  savuigs  of  the  peqple  which  would,  ui  ordinary 
course,  be  devoted  to  the  development  of  eommeraal  enter- 
prise have  had  to  be  devoted  to  wartlike  enterprise.  But 
against  that  groat  km  we  hare  to  set  the  groat  incroase  in 
the  class  of  machinery  required  for  the  manufacture  of  mu- 
nitions of  war  and  an  increase  in  the  machinery  in  our  textile 
fact^NMS.  I  think,  on  the  whole,  it  may  be  taken  that  the 
increase  due  to  war  requirements  is  a  good  set-off  to  the 
idiseiloe  of  the  usual  eccmomic  saving  and  devekyment. 

**Then  we  lost  some  of  our  fmagn  mvestments;  and  cor 
loss  was  your  gain.  It  is  estimated  that  at  the  beginning  of 
the  war  we  heU  about  tw»ty  faillkm  doyars' worth  of  forai^ 
investments,  but  we  now  hold  only  fifteen  billions.  Inas- 
much as  we  used  the  interest  on  those  investments  to  pay  for 
hnports  abroad,  to  that  extoit  we  aro  arq^ded  for  the  future. 
We  had  a  vast  rise  in  prices,  including  the  prices  of  raw 
materialst  machinery,  food  and  clothing.  It  led  to  an  enor- 
mous disturbance  m  tiie  wage  market.  It  led  to  the  very  vital 
consideration  that  everything  that  we  buy  abroad  in  the  form 
of  law  materials  has  ridsed  the  cost  of  production  against  us. 
But  now  that  we  aro  actually  manufacturing  and  getting 
again  into  the  export  markets  we  shall  gain  a  corresponding 
rise  in  the  prices  we  shall  obtain  for  our  eiported  goods. 

•*We  had  an  enormous  loss  of  shipping  also,  not  only  by 
natural  causes,  but  by  German  submarine  attacks.  When  you 

leaKae  tibat  sliqn^    ^  ^  ^  ^  ^"^^ 

realize  that  we  cannot  sit  down  under  that  loss.  Already  our 

fKlphiiilHing  yards  aro  full  of  new  merchant  steamers  in 
process  of  ccmstruction,  and  we  hope  in  oonrse  of  time  to 
overtake  the  terrible  losses  which  we  sulFered  during  the  war.'* 

Mr.  Alfred  C.  Bedford,  Chainnan,  Estecuthe  Commiitm  9$  Omi- 

ference;  Chairman,  Standard  Oil  Company,  New  York* 

Strange  economic  conditions  confront  us  on  every  hand, . 
bul  we  oamiot  he  suifmed  to  find  that  this  great  wnr,  fike 

S8 


WHAT'S  BACK  OF  EUBOPE'S  CBKDIT» 


other  wars,  has  encnrmously  displaced  the  ratio  between 

conmiodiUes  and  money,  reducing  the  supplies  of  commodities 
and  enormously  augmenting  the  pap^  currency  and  deposits 
set  off  against  them.  We  have  to  deal  with  the  outcome  of 
this  situation,  which,  as  was  inevitable,  is  high  prices,  or 
rather  one  (tf  the  fumfamMntal  causes  ctfhie^prioeB.  Itseems 
to  me  that  much  of  the  success  of  our  efforts  just  now  wiH 
depend  on  how  we  regard  this  stepchild  of  the  war. 

"You  are  probably  familiar  with  the  annual  review  of  the 
Swiss  Bank  Corporation  for  the  year  1918,  which  in  its  sum- 
mary shows  that,  leaving  Russia  out  of  consideration,  the 
note  circulation  of  the  belligerents  increased  during  the  war 
by  447  per  cent,  which  during  the  same  period  their  gold 
reserves  increased  only  45  per  cent. 

"To  me  the  existence  of  this  great  mass  of  paper  currency 
precludes  the  possibility  of  a  rapid  fall  in  prices,  even  if  such  a 
trond  woulkl  not  find  fonnidabfe  dbstades  m  tte 
of  national  debts  and  the  determination  of  labor  to  keep 
wages  high.  High  prices  may  be  regarded  as  a  symptom  of 
unsoundness,  but  we  can  all  appredate  the  danger  wfaidi 
would  accompany  any  rapid  fall  in  prices  which  would  cause 
goods  to  sell  at  less  than  they  cost  and  the  r^yment  in  dear 
money  of  debts  which  had  been  contracted  in  cheap  numey. 
For  these  primary  reasons,  it  seems  as  if  we  must  be  recon- 
dled  for  the  time  to  a  dianged  vahiation  of  moi^ 
ourselves  to  a  permanently  higher  level  of  prices." 

Bman  du  Marais,  Vice-Chabrman,  Wranch  MMom  IMroctar* 
OmMi  Lyonmde,  FmH§,  Vrmme* 

"Several  weeks  after  the  signing  of  the  armistice,  I  met 
one  of  our  best-known  generals.  As  he  knew  the  terrific 
strain  which  our  country  had  undergone,  he  asked  whether 
France,  victorious  in  arms,  could  still  muster  up  su£Bicient 
strongth  to  bear  the  financial  burden  that  five  years  of  con- 
tinuous warfare  had  imposed  upon  her.  I  simply  replied: 

"  'During  the  most  trying  days  of  the  struggle  you  never 
doubted  your  soUisfS.  The  signing  of  the  anustiee  haa  not 


INTERNATIONAL  TRADE  CONFERENCE 


ended  the  war.  It  has  menly  tnmqKMed  the  field  of  battle. 

Why  not  have  the  same  confidence  in  the  worker  of  France 
as  we  have  all  bad  in  the  soldier  at  France.  He  is  one  and 
the  same  man.' 

Mr.  Mymn  T.  Herrick,  Chairman,  Union  Carbide  and  Carbon 
Ctmipmy,  Oevekmd,  Ohio:  Jonnmrly  Ambassador  to  France. 

"You  ask,  'Is  the  credit  of  England,  France,  Belgium  and 
Italy  good?'  Yon  inquire,  'What  is  their  collateral  upon 
which  to  base  credit?'  The  late  J.  P.  Morgan  once  said  in  a 
great  financial  crisis  that  character  was  the  best  collateral; 
that  he  would  not  accept  the  best  material  collateral  indees 
it  was  backed  by  character.  Mr.  Morrow,  who  sat  at  his 
feet»  told  you  last  nic^t  that  character  was  the  best  collateral 
upon  which  to  base  credit.  This  has  beonne  an  axiomic 
truth.  In  fact,  it  is  afiBrmed  and  understood  by  all  bankers. 
Permit  me  to  inventory  to  yon  the  collateral  ctf ered  by  our 

aUies  of  the  world  war. 

''When  the  lire  of  the  world  was  focused  upon  Belgium, 
when  the  German  Army,  forty  years'  carelol,  siaiBter 
building,  rushed  her  border,  the  value  of  your  Belgian 
collateral  was  then  tested.  You  witnessed  the  reincarnation 
of  France  and  England.  True  to  thcaor  history  they  have 
shown  you  what  they  could  do  in  war.  Is  this  not  an  earnest 
of  what  they  wfll  do  in  peace? 

"At  the  beginning  of  the  war,  Italy  was  bound  in  national 
alliance  with  Grermany.  When  the  malevolent  designs  of 
Germany  were  disdoeed,  she  broke  that  alUanoe  and  joined 
the  Allies.  The  Italy  of  Cavour  and  Garibaldi,  the  Italy  of 
today  needs  no  endorser  of  her  note. 

'*If  you  want  to  know  what  a  nation  will  do  when  put  to 
a  test,  ask  what  it  has  done  in  the  past.  Need  anyone  ask 
what  Belgium,  Italy,  France  and  Enc^and  have  done  in  all 
thecmturiesP  Fot  the  purposes  of  character  credit,  you  need 
only  know  four  and  a  half  years  of  their  history — ^and  even 
obtaiae  Geimany  knows  that!'' 


40 


WHAT'S  BACK  OF  EUROPE'S  CREDIT? 


Mr.  Ferdinando  Quartieri,  Chairman,  Italian  Mission:  Presi" 
dmu»  ItoUan  ChmniaU  Ituhutriei  Cofporatkm;  MUath  iUU^ 

''Before  tbe  war  Italian  industry  and  thrift  had  placed 
the  economic  life  of  our  country  on  a  solid  basis  and  ianned 
its  steady  progress.  The  rate  of  exchange,  constantly  at  par, 
was  the  best  proof  of  this.  A  careful  study  of  the  situation 
win,  I  thnik,  show  tlmt  there  k  no  reason  why  we  diould  not 
again  stabilize  our  position. 
''In  studying  the  items  which  now  turn  the  balance  of 

that  they  fully  justify 


IIILI 


trade  so  heavily  against  us,  we 
confidence  in  a  rapid  economic  recovery.  The  excess  of  im- 
ports is  accounted  for  mainly  by  raw  BMterials  for  which 
there  used  to  be  but  a  limited  demand  but  whidi  our  new 
factories  now  require  to  transform  into  manufactured  goods 
whidi  Italy  formerly  imported  from  Eurqpean  countries, 
mainly  from  Germany.  As  for  our  food  imports,  they  wfll 
gradually  be  reduced  now  that  our  men  are  retumiog  £rom 
tiie  armiei  to  the  farms. 

"Our  industrial  development  and  our  agricultural  revival 
therefore  justify  the  belief  that  in  a  few  years'  time  the 
balance  of  trade  will  once  more  be  sudi  as  to  make  Italy  the 
self-supporting  country  she  was  before  the  war.  She  will  then 
be  able  to  pay  off  the  dd»ts  she  has  iocuired  with  foreign 
countries  without  being  unduly  hampered  by  excessively 
high  rates  of  exchange.  She  is  convinced  that  her  co-opera- 
tion will  be  as  valtMble  to  her  fldlies  in  the  industrial  qphsre  as 
it  was  on  the  battlefield.  She  is  confident  that  with  your  help 
she  win  be  able  to  devek^  more  fully  her  resources  and  to 


IIIU 


ner  abundant  supply  of 


employment  m  her  own  ootantry  for  h 
labor,  the  value  of  which  you  will  be  the  first  to  appreciate. 

''It  is  this  lalxNT  which  awaits  your  co-q[>mition  to  become 
a  bountiful  source  of  wealth  and  prosperity  to  the  whole 
world.  If  your  co-operation  does  not  fail  us — and  it  will  not — 
the  Italo-American  understanding  will  yet  enable  us  to  wrile 
jointly  a  page  in  the  annals  of  history  not  unworthy  of  the 
oouD^ries  of  Washington  and  oi 

41 


1 

• 

INTERNATIONAL  TRADE  CONFERENCE 


m.  W.  a.  WmiU,  Fmikhni,  Fini  mHomml  Bmnk,  Si.  UmU,  ifc. 

'The  wmMucM  of  Enfope  are  very  great  ancU  bdng  wmkf 

handled,  will  pull  Europe  out  of  its  difficulties.  But  we 
must  not  reckon  these  difficulties  lightly.  Against  the  assets 
there  are  heavy  Ittibilitiee.  Floanoe  and  currency  are  in  grave 
disorder  in  most  of  the  countries  of  Europe.  The  volume  of 
production  k  low«  mqiorts  have  been  mormous  and  esq[>ort8 
have  been  small.  Hie  burden  of  ddbl,  bodi  internal  and 
external,  is  very  great  and  the  volume  of  taxation  is  far  from 
adequate  to  meet  the  eodsling  conditioiis. 

*'The  European  currency  situation  is  distressing.  It  is,  of 
course,  closely  linked  with  the  public  finances  of  the  Govern- 
ment. GoM  redemption  in  aU  beUigerent  countries  of^Con 
nental  Europe  was  suspended  when  the  war  began,  and  they 
went  at  once  on  an  iiredecgnable  paper  money  basis.  The 
value  of  irredeemaUe  money  is  at  best  an  uncertain  thing. 
Sound  currency  divorced  from  immediate  redemption, 
dkectly  or  indkectly  in  predoua  metals,  is  an  inqpossible 
thing.  The  value  of  such  currency  goes  up  and  down  wifli  the 
credit  of  the  government,  and  the  prospect  of  redemption  in 
gold.  If  the  vokme  of  sudi  paper  money  is  very  great  the 
prospect  of  gold  redemption  becomes  remote,  and  the  value 
of  the  paper  is  at  the  m^rcy  of  speculation,  rumor,  political 
occurrences  and  social  agitati(m.** 

Mr.  Albert  E,  Janssen,  Director,  National  Bank  of  Belgium, 
BnmeU;  Prqfessar,  University  qf  Louvain,  Belgium. 

"I  know  that  credit  must  be  based  upon  confidence.  I 
wH  say  to  you  that  you  may  have  confidence  in  Belgium. 
Bolshevism  cannot  exist  in  a  victorious  country— with  our 
free  constitution  and  our  democratic  institutions,  the  oldest 
on  the  Continent.  We  rapidly  getting  back  our  old  stride. 
We  have  a  great  division  of  property  in  Belgium.  The  farms 
are  nearly  all  very  smalL  Four  hundred  million  dollars  are 
dqpotfted  in  the  savings  banks  of  Belgmm,  wiiich  have  three 
million  depositors,  mostly  of  the  poorer  classes,  out  of  a 


WHAT^S  BACK  OF  EUROPE'S  C  BE  PIT? 

popuktion  <tf  7,500,060.  When  so  many  people  are  saving 

and  conservative  in  their  habit,  they  do  not  rush  blindly 
into  political  adventures. 

"Fortunately,  too,  we  have  a  good  and  democratic  King,  who 
isintimately  acquainted  with  the  needs  of  his  qountry .  I  remem- 
ber something  the  King,  said  to  the  people  when  he  trium- 
phantly came  badt  to  Brussels  to  receive  the  loyal  acclaim  and 
allegiance  of  all  classes,  capital  and  labor  aUke.  The  King  said : 
'Order  is  the  basis  of  social  life.  Without  order,  social  life 
cannot  be  developed.  But  good  order  does  not  consist  in  a 
feroed  fluhmiflsiftn  to  unnatural  or  outside  compulsion.  It 
must  be  a  commcm  acccnrd  of  the  hearts  and  muids  of  all,  so 
that  the  spirit  of  fraternity  and  harmony  inspires  a  patriotic 
duty  and  just  care  for  the  BMiint^wanne  of  law  and  oider.'  ** 

Mr.  Eugene  Schneider,  Chairman,  French  Mission:  fifKBsni  qf 
Creusot  Steel  Works,  France. 

• 

•'Now,  what  is  the  situation  in  the  Allied  countries?  At 
the  present  moment  we  are  suffering  from  three  main 
diseases:  Insufficient  means  of  tranqportation,  hi^^  prioes, 
inflated  paper  currency.  Note  that  each  of  these  evils  bears 
in  itself  its  own  antidote. 

'"The  crisis  in  transportation  comes  from  insufficient 
•  rolling  stock.  No  doubt  but  it  rises  also  from  a  formidable 
increase  in  tnJEb.  High  prices  and  inflated  currency  come 
from  insufficient  production  and  profiteering.  No  doubt  but 
they  arise  also  from  a  considerable  increase  in  consumption. 

In  our  sevord  countries  the  Governments  and  the  pec^les 
are  endeavoring  with  an  energy  resembling  that  displayed 
during  the  war  to  oope  with  the  evils  and  itanqp  them  out. 
Road  transportatimi  k»  organized;  traffic  is  diverted  to  the 
canals;  no  possible  expedients  for  reUef  of  congestion  are 
ignored.  Laws  have  been  made  agamst  profitem. 

"As  to  the  international  money  exchange  crisis,  had  this 
not  been  foremost  in  our  preoccupations  we  should  not  have 
crossed  the  Atlantic  to  oooiBr  aboirt  it  with  j&nu  Nsmt 


48 


INTEBNATIONAL  T&ADE  CONFERENCE 


miiid  if  a  soooeaBf  ul  lemedy  for  the  ooodition  does  not  come 

immediately.  The  essential  thing  is  to  attack  the  problem; 
the  essential  thing  is  to  show  good-wilL'* 

Mr.  Norman  EL  Eknfb,  President,  Trust  Company  of  Cuba,  New 
York. 

**Many  people  have,  in  my  judgment,  exaggerated  the 
credit  requirements  of  Europe,  and  underestimated  its  f unda- 
mailal  financial  and  eoonomic  strength  and  its  powers  of 
recuperation.  They  have  apparently  calculated  on  the  gross 
requirements  without  taking  into  proper  oonsideratioQ  the 
offsets  by  way  <^  foreign  sooroes  of  inocme  and  what  wiD 
be  produced  and  furnished  in  part  exchange.  So  recent  is 
our  ^[perienoes  of  the  financial  conditioos  wUdi  aisled 
during  the  war — ^when  men  were  devoting  themselves  to  the 
business  of  destruction — ^that  we  are  prone  to  overlook  the 
vast  reciqierative  power  mhemt  in  any  country  which, 
though  devastated,  has  not  been  depopulated  and  the  people 
of  which  have  not  been  starved. 

"In  makmg  estimates  of  Europe's  faturo  requirements, 
there  is  a  tendency  to  cover  a  period  which  is  longer  than 
seems  wise.  Still  under  the  fear  of  a  continued  shortage  of 
coramodities,  there  is  not  sufficient  attowanoe  made  for  the 
fact  that  the  production  of  wealth  is  cumulative;  nor  for  the 
fact  that  a  considerable  pmod  of  tune  is  required  to  expend 
wisily  for  the  purposes  of  peace  somsitfnKMieyevm  approxi- 
mating those  which  were  lavishly  blown  into  fragments 
within  short  pariods  while  the  war  was  in  propess.  To  this 
slate  of  mind  is  added  the  impression  that  the  amount  of 
available  capital  in  the  world  is  limited,  and  not  reproductive, 
and  that  estiinates  must  noRRT  be  made  for  everything  reqoir^ 
over  a  period  of  years. 

'*The  eifect  of  these  factors  is  to  cause  what  I  consider 
gross  overestimates  of  European  nquiremmts,  wfaidi  tend 

to  create  an  impression  in  our  community  of  a  considerable 
shortage  of  commodities  and  lead  to  a  frame  of  nund  which 


44 


WHAT'S  BACK  OF  EUROPE'S  CREDIT? 


lends  itself  to  the  support  of  constantly  rising  prices,  and 
increases  the  difficulties  of  meeting  the  situation.  I  beUeve 
that  the  productive  capacity  of  this  country  heightened  as 
it  has  been  by  the  war,  added  to  the  productive  capacity  of 
Europe,  will  suffice  to  supply  what  the  world  requires  in 
erodit  and  commodities  as  hat  as  the  woiM  is  preparod  to 
use  them.  We  are  passing,  at  the  moment,  through  a  period 
where  the  world  is  stocking  up  on  commodities.  That  period 
once  passed,  we  shall  realize  that  there  are  commodities 
enough  to  go  aroimd,  and  we  shall  then  run  into  a  period  of 
more  normal  supply  and  dmmadf  with  more  reasonable 
prices  for  all  sorts  of  products.*' 

Mr.  James  S.  Alexmnder,  Ckakman,  Conference  Committee  on 
Credit  and  Finance;  President,  Notional  Bsmk  eif  Cemmenw, 
Nam  York. 

*'This  doctrine  <tf  tlurift  and  industry  is  apphcaUe,  I  think 

we  may  aU  agree,  equally  to  conditions  in  all  the  nations 
engaged  in  the  war*  and  the  encouragement  of  its  practical 
applicatibii  is  a  primary  step  in  any  program  of  reooostruo- 
tion.  We  may  as  well  face  the  fact  that  the  majority  of  our 
lo«DB  to  the  nations  of  Eurcqpe  are  secured  at  the  presoit 
time  solely  by  the  probability  of  future  productive  work. 
The  people  of  Europe  can  repay  these  loans  made  to  them 
by  the  people  ci  America  only  by  prodndng  raw  matoials 
and  manufactured  articles,  by  saving,  by  sound  policies  of 
taxation.  The  same  policies  must  and  will  be  adopted  in 
the  United  States.  But  the  woild  ntuatioa  cannot  be  helped 
one  iota  by  all  the  planning  and  discussion  and  clear  thinking 
of  the  combined  bankers  and  business  men  of  the  world  unless 
an  the  peoplesof  the  world  return  to  thm  healthy  and  normal 
tasks  and  begin  to  do  a  day's  work.  We  must  stop  leaning  on 
our  governments  and  de^peiod  upon  ourselves. 

"  I  would  repeat  that  the  sohition  of  our  common  prd>- 
lems  seems  to  demand  as  a  chief  element  the  maximum  of 
industry  and  thrift  withm  the  nations;  it  calls  for  the  restora- 


INTERNATIONAL  TRADE  CONFERENCE 


taon  of  a  gmter  d^giw  of  eqaiyfarimn  in  the  oommercial 

ioterchange  between  the  United  States  and  the  countries 
of  Europe;  the  cessation  of  our  Govenunent's  fiiHMMw>|^  of 
foragn  prndmam  h&ee;  the  enoooragemrat  of  private  enter- 
prise and  initiative  in  place  of  government  assistance,  and 
the  provision  of  a  largo:  measure  of  kng-tune  credit  to  finance 
the  foreign  pordlmees  of  American  goods  until  such  time  as 
Europe  can  pay  for  what  she  buys  approximately  by  what 
she  sends  us  in  the  fofm  ot  products.** 

Mr.  Domenico  Gidoni,  Representative  qf  Italian  Treasury  in 
United  States,  New  York. 

**  It  is,  of  course,  impossible  to  guess  how  long  the  economic 
disorders  produced  by  the  war  will  last»  and  when  the  ex- 
change situaticm  wiD  be  restored  to  the  normal.  There  is  no 
precedent  in  history  for  this  war.  Before  it  the  slaughters  of 
Cffisar  and  Niqpoieon  pale  in  memory* 

^'StiU,  there  is  one  positive  reason  to  hope  for  the  future — 
the  energy  and  economic  resources  which  the  peqple  of  the 
world  leveded  ki  the  Um  of  the  crisis.  Bismarok  in  1870 
tiiought  that  he  had  reduced  France  to  financial  impotency 
for  at  least  twenty  years  by  imposing  on  her  a  wv  mdem- 
nity  of  5,000,000,000  francs.  But  France  paid  the  entire 
debt  in  about  three  years  and  within  two  decades  loaned 
Russia  far  greats  sums.  Spain,  on  the  brink  of  bank- 
ruptcy after  the  Spamsh- American  War  of  1898  completely 
re-established  her  financial  position  in  a  little  over  ten  years. 

'These  precedents  are  not  ncaHed  to  dednoe  fitmi  them  a 

prophecy  of  an  easy  and  quick  return  to  normal  conditions. 
The  economic  crisis  and  tests  that  must  be  met  aie  f ull  of 
difficttltieB,  but  we  have  a  growing  assurance  that  Italy, 
just  as  she  won  the  victory  of  war,  will  also  win  the  victory 
of  peace.** 


46 


LABOR'S  ATTITUDE  OVERSEAS 


V 

Labor^s  Attitade  Overaeaa 

**The  abuse  made  of  the  words  soeialization  and 

nationalization  has  brought  about  a  formi- 
dable reaction  in  public  opiniorC^ 

Sir  JrnnM  Hope  Simpson,  Mmia0nt  Dtmcim,  Bmk  €(f  Uwrnpooi,  ' 
Lherpoot,  Mniland: 

''I  would  like  to  refer  for  a  moment  to  the  labor  unrest 
in  England.  We  find  ourselves,  owing  to  the  war,  in  a  v&cy 
difficult  position  in  regard  to  labor.  I  will  not  cover  the 
grouid  which  was  so  well  covmd  yesterday  by  Sir  Arthur 
Shirley  Benn,  but  I  would  like  to  confirm  from  my  own  ex- 
perience and  inquiries  that  what  he  said  when  he  said  that 
in  spite  ol  all  the  strikes  of  which  you  read,  them  seons  to  be 
growing  up  a  distinctly  better  feeling  between  masters  and 
men.  There  seems  to  be  a  recognition  on  the  part  of  labor 
that  lestnction  of  output  is  a  national  calamity,  and  a  reoo^^ 
nition  on  the  part  of  the  employer  that  the  workman  must 
have  a  greater  share  than  heretofore  in  the  profits  of  his  work 
as  well  as  greater  opportunities  to  enjoy  the  social  advant- 
ages of  life. 

''When  you  get  that  attitude  on  the  part  of  berth  cosplofyer 

and  the  employed,  I  do  not  think  it  will  be  beyond  human 
skill  and  wisdom  to  find  a  means  of  solution  to  the  difficulties 
which  still  confront  cor  country .  Of  course,  we  hava  had  w 
awful  loss  of  labor  through  the  death  of  so  many  young  men, 
but  we  have  discovered  a  great  reservoir  of  strength  in  the 
torn  oi  female  labor.  When  you  take  that  into  ocmsideration 
and  add  to  it  the  fact  that  we  are  well  equipped  now  with 
machinery  of  all  kinds,  espedally  that  we  are  eoqploymg 
more  automatic  machinery  than  we  did  before,  I  do  not  think 
we  need  to  be  anxious  in  England  about  the  future  of  the 
labor  problem.'' 

47 


INTERNATIONAL  TRADE  CONFEBENCE 


^^l^^'^^'f^!^  Hankar,  Chairman,  Belgian  Mission;  Director, 
National  Bank  of  Belgium,  Brussels. 

•Tn  op^g  this  Conference  last  Monday,  Mr.  Bedford 
asked:  'What  are  the  menaces  to  social  order  aad  stability 
in  the  different  countries  in  Europe  today?  Have  the  dangers 
of  Bolshevism  or  Sociahsm  passed?  Is  there  any  danger  any- 
where  of  the  confiscation  of  private  property,  the  non-iecog- 
nition  of  the  rights  of  ownership  and  business  management 
or  the  annulment  of  law? ' 

"To  the  first  and  seecmd  questimis  I  will  say  that  there  is 
no  trait  of  Bcdshevism  in  my  country.  Our  people  are  resUess 
and  m  many  cases  dissatisfied,  it  is  true,  but  what  people 
rendered  homeless  by  war  and  facing  th^  problems  of  life 
lesultant  from  a  great  war  would  not  ber'  But  that  does  not 
mean  they  are  indined  against  lawand  order  or  aie  Bolshevik 
intendracies. 

*Xet  me  assure  you  also  that  there  is  no  danger  of  confis- 
cation of  private  property,  non-iecogmtioii  of  the  rights  of 
ownership  or  annufanent  of  laws,  which  fundamentally 
depend  on  successful  reciprocity  in  commercial  intercouiae 
between  Belgium  and  the  nations  <rf  the  worid/* 

Mr.  Bu^ne  Schneider,  Chairman,  French  Mission:  FresidmU  of 
Creusot  Steel  Works,  France.  ri^m^wnr 

"Wh«i  the  eight-hoar  day  became  law  the  representatives 
of  the  workers  acknowledged  that  the  reduction  should  not 
mUul  a  diminution  in  production.  Yet  production  has 
dunimshed. 

'This  then  raises  the  queatioii:  'Must  madunery  be  hn- 
proved?  Must  overtime  be  worked?  Must  we  fall  back  to  a 
ten-hour  day?'  Open  a  Belgian,  French,  English  or  Italian 
newspaper.  The  sulyect  is  discussed  by  men  of  opposite 
parties  with  remarkable  highmindedness.  Every  factory, 
every  workshop  is  trying  to  institute  bonus  systems  or  other 

schemes  of  payment  lilydy  to  enhance  the  qiirit  of  incie^ 
production. 


48 


LABOR'S  ATTITUDE  OVERSEAS 


"  The  abuse  made  of  the  words  socialization  and  nation- 
alization has  now  broui^t  about  a  fonnidable  reaction.  The 
common  sense  of  the  peopte^Bfr  their  instinct  of  social  ooo- 
servation  have  both  shown  themselves  in  opposition  to  pre- 
mature experiments.  Public  q[»nioii,  though  ready  to  stand 
by  the  workers  in  any  reasonable  claims  and  to  help  them  in 
any  ^orta  toward  betterment,  has  made  it  clearly  under- 
stood that  there  are  limits  whidi  must  not  be  ovefstqnied 
and  the  revolutionary  adventures  are  not  to  its  taste. 

''Bolshevism,  after  fiEmcying  that  Europe  would  be  an 
easy  prey,  has  met  with  an  indomitable  resistance  in  the 
Allied  nations.  It  broke  out  in  Munich  and  Budapest,  but 
stopped  at  our  firontiers.  This  does  not  mean  thatwe  do  not 
dread  it,  but  we  are  on  our  guard/* 

Mr.  F.  O.  Watts,  President,  First  National  Bank,  St.  l^uis.  Mo. 

**A  second  factor  affecting  the  problem  is  the  labor  situa- 
tion. Labor  has  been  advancing  to  a  greater  position  of  power 
m'  our  own  and  all  European  oomitries,  and  the  war  haa 
greatly  accelerated  this  movement.  It  is  now  a  question 
whetber  labw  will  serve  its  own  interest  and  at  the  same 
time  keep  up  production  and  produce  that  surplus  of  goods 
for  exchange  with  other  peoples,  or  whether  there  will  be  a 
general  dowing  up  of  mdua^rial  ac^vity,  resulting  in  either 
no  net  increase  in  goods  or  in  an  actual  drawing  up<m  the 
past  accumulated  stock  of  capital. 

^It  is  desiraMe,  theref<»e»  that  no  artiicial  or  feioed 
resumption  of  industrial  life  be  attempted,  for  such  is  neither 
possible  nor  advantageous.  Both  for  the  final  good  of  the 
European  peoples,  as  well  as  our  own,  the  normal  basis  of  all 
profitable  trading  should  be  resumed  as  quickly  as  possible. 
That  is,  there  should  be  an  exchange  of  goods  for  goods  and 
not  a  continuation  of  forced  trading  based  upon  an  estenwre 
system  of  credit.  It  is  just  as  true  now  as  before  the  war  that 
the  European  nations  can  produce  many  goods  which  we 
either  cannot  produce  or  cannot  produce  so  dieaply,  and 

49 


INTERNATIONAL  TRADE  CONFERENCE 


therefore  a  mutually  profitable  basis  of  trade  exists.  But  it 
would  seem  that  some  of  our  peoglit  oonsider  the  end  to  be 
adiieved  in  toreiga  trading  is  always  to  sell,  but  never  to 
buy  goods,  seeking  on  the  contrary  to  effect  no  exchange  of 
goods  eioe|yt  for  mon^/' 

Asfvwi  du  Misralf »  Vlc^^Chobttuuh  Wf^nA  Mbsfion/  JMrsc^sfv 

''Production  does  not  dqpend  upon  the  workingman  alone. 

A  weaver  in  India  produces  no  more  than  several  inches  of 
coarse  doth  as  a  result  of  an  entire  day's  work.  Production 
does  not  depaid  ap(m  the  inventor  alone.  Without  capital 
he  cannot  realize  his  machinery.  Production  does  not  depend 
upon  capitd  akoe.  Capital  without  the  woridngman  and 
the  inventor  would  be  sterile.  Production  depends  rather 
upon  the  harmonious  combination  of  workers,  technical 
knowledge,  and  capitaL  It  is  the  fruit  of  these  three  ekments. 

"  In  order  to  have  work  well  paid,  its  output  must  be  large. 
Human  eff(Hrt  must  be  directed  and  co-ordinated  throuf^ 
the  intelligence  and  technical  knowledge  of  the  head  of  the 
enterprise.  Production  must  be  multipUed  by  the  use  of  the 
madiine,  whidi  is  the  fruit  of  capital.  Every  increase  in 
wages  which  does  not  carry  with  it  a  corresponding  increase 
in  production  raises  the  cost  of  living.  It  is  but  a  deceptive 
phantcHB.  When  everyone  wiD  be  brought  to  the  realization 
of  this  point,  it  will  mean  that  the  chief  part  of  economic 
difficulties  has  been  solved  or  at  least  lessened  and  that  an 
important  step  has  been  taken  toward  social  progress." 

Mr.  Alfred  C.  Bedford,  Chairman,  Executive  Committee  of  CoU" 
Jerence;  Chairman,  Standard  Oil  Company,  New  York. 

''Civilization  is  threatened  by  insidious  forces,  not  from 
without  but  from  within.  Strange  doctrines  are  almad. 
The  serious  deprivations  of  war  have  given  rise  to  counsels 
ol  despair;  the  reaction  from  the  spirit  of  unnfilfiihness  and 

comradeship  of  war  has  been  towards  suspicion  and  towards 

50 


LABOE'SATTITUDE  OVERSEAS 


cjqiectations  that  cannot  be  fulfilled.  We  find  people  who 
speak  as  though  the  destruetion  of  our  whole  mcml  and  sod^ 
fabric  was  impending.  Not  for  a  moment  do  I  sympathise 
with  siu^  pessimism,  and  yet  Cardinal  Mercier  before  the 
Qiamber  of  Commefoe  of  New  York  a  few  dqrs  ago»  qpoke 
significantly  of  the  sinister  and  destructive  ideas  which  were 
falling  on  fruitful  soil  in  his  own  native  Belgiuni.  The  same 
condition  prevails  throughout  Europe  and  evidences  of  its 
inroads  are  not  lft/*lfing  in  the  United  States.  The  nations  of 
the  worid  face  a  oomnKm  foe— an  oienqr  within  us,  a  para- 
site born  of  the  war,  and  the  destruction  of  which  depends 
upon  the  prompt  resuscitation  of  all  countries  from  the 
devastation  of  war. 

•'Upon  the  business  men  of  the  world  rests  the  duty  to  see 
to  it  that  the  prcqdiedes  of  de^Mur  shall  not  be  vorified, 
and  that  out  of  the  waste  and  destruction  of  war  there  is 
reared  a  new  world  and  a  new  prosperity  which  shall  insure 
for  an  time  the  welfare  and  happiness  dt  mankind.  Upon 
these  business  men  rests  the  opportunity  and  the  obligation 
to  porsoe  a  poficy  of  sudii  sympathy  and  enlightenment  in 
all  then:  dealings  that  this  new  cancnr  in  our  social  and  busi- 
ness life  shall  have  no  opportunity  to  grow." 

Mr.  Aibart  E.  Janssen,  Director,  National  Bank  qf  Belgium; 
rr^ieeeor,  Univereiiy  of  JUmmdt^  BrmeeU,  Bel§bm> 

*'la  undertaking  the  great  task  of  economic  reconstruc- 
tion, an  imperative  duty  is  imposed  upon  tiie  people  of 
Belgium.  They  must  stand  united  to  produce.  Production 
mnst  be  the  ruk  of  alL  There  must  be  strict  eoonomy  on  the 
part  of  individuals  and  the  govemm^t.  It  is  necessary  that 
we  produce  to  the  maximum  of  our  power  and  consume  as 
little  as  posnble  so  that  oar  eaqport  trade  may  grow  rapidly 
and  the  returns  from  it  meet  the  deficit  in  our  payments  on 
international  debts. 

*'That  is  the  fundamental  principle  upon  whidh  industrial 
and  commercial  restoration  must  be  based  in  our  country. 


51 


INTERNATIONAL  TRADE  CONFERENCE 


whose  sources  of  production  were  so  rutlilessly  destroyed  by 
Atbkymim.  WearoiioteasilydiMoaraged*  OntlMcon^^ 
we  have  confidence  in  ourselves,  in  the  industriousness  and 
thrift  of  all  Belgians,  characteristics  which  the  people  of 
Bdgiura  evor  have  posBesBecL  Oar  oomitry  wfll  rapidly 
recover.  You  have  proof  of  that  in  what  we  akeady  have 
fif)^y>iif^pl{i|li4^  i^iiAA  the  aimislioe* 

"We  hope  and  firmly  believe  that  ten  years  from  now, 
when  Belgium  in  1930  will  celebrate  the  glorious  centenary 
of  its  indepeodenoe,  we  shaU  show  anew  to  the  world,  as  we 
were  able  to  show  in  August,  1914,  what  the  energy  and  the 
devotion  of  the  people  of  Belgium  can  do  to  make  a  pros- 
perons  and  progresshre  natioiL'* 

Mr.  John  H.  Fahey,  Vice-Chairman,  Executive  Committee  of 
Conference;  St.  Johns  River  Shipbuilding  Company,  Boston* 

"The  aftermath  of  war  in  some  of  its  aspects  is  quite  as 
terrible  as  the  struggle  itself.  The  death  of  the  sokUer  on  the 
battlefidd,  whm  he  gives  all  for  love  of  country  and  hu- 
manity, is  one  of  the  most  inspiring  things  we  know.  The  toll 
of  death  which  eomes  from  battle  is  qiectacular  in  extreme 
and  quickly  impresses  itself  upon  the  mind;  but  as  a  sequence 
of  war  there  are  tragedies  quite  as  terrible  but  less  appreciated. 
UndflfiMmriahnient^  starvation  and  disease  denamd  this 
awful  tribute  from  the  war-swept  countries  and  those 
affected  by  its  ravages.  The  process  is  slower  and  more 
subtle,  yet  it  may  be  no  less  destroctive  in  its  results.  It  is 
not  death  and  sorrow  alone  that  are  involved,  but  the  threat 
to  all  we  hold  dear  in  life  as  represented  and  protected  by 
modem  civiliiaticm. 

"Hopeless  men,  unable  to  work  and  to  secure  food  and 
shelter  tor  their  f amilie»-4okUers  who  have  risked  every- 
thing in  the  zeal  of  patriotism  for  the  benefit  of  their  fellows 
— quickly  turn  in  despair  to  the  belief  that  the  Amt^t^g  iocial 
order  imsl  be  wrong  wUiA  takes  no  cognisuee  of  their 
sufferings  or  brings  to  them  no  adequate  rehef .  Men  who 

M 


LABOR'S  ATTITUDE  OVERSEAS 


are  starving,  men  deprived  of  opportunity  to  work,  can 
hardly  be  patient  and  f (urgiving.  The  issues  which  brought 
ns  into  the  war,  theref(»e — freedom,  justice,  the  mainlenanee 
of  civilization — are  just  as  much  at  stake  today  as  they  were 
in  the  qiring  of  1017  when  we  plunged  into  the  stmg^'V 

Mr.  Homer  L.  Ferguson,  President,  Chamber  of  Commerce  of 
the  United  States,  President,  Newport  News  ShipbuUdiilig  Com" 
pMf,  Newport  News,  Va. 

"Production  of  commodities  in  factories  and  mines  and 
the  carrying  on  of  the  transportation  which  Is  vital  to  pro- 
duction— ^this  is  all  just  as  essential  to  us  as  it  is  to  our  friends 
across  the  sea.  While  we  are  discussing  labor  troubles  and 
internal  dissttisioiis,  it  is  just  as  well  to  wmemhwr  thai 
labor  troubles  follow  upon  industry;  they  do  not  precede 
establishment  of  business  but  fallow  it.  Without  businesSt 
wiihoat  manoliBcturing,  time  can  be  no  labor  tronbles. 

"We  believe  that  here  in  the  United  States,  without  our 
foreign  trade,  without  the  safety  valve  id  our  foreign  faisiness, 
our  enormous  production  not  only  (tf  foodstuffs  but  (^manu- 
factured articles  would  recoil  upon  us  and  our  labor  troubles, 
seiioiis  as  they  are  now,  would  be  magnified  tenfold  by  an 
over-production  here  of  manufactured  goods  and  by  unem- 
ployment. We  are  just  as  interested,  therefore,  in  keefung 
op  our  foreign  trade  as  omr  friends  in  Europe.  Onr  infernal 
affairs,  our  labor  troubles  are  not  only  deeply  influenced  by 
simihir  conditions  abroad— there  is  an  intimate  connection— 
bat  are  also  influenced  deeply  by  our  conuneroe  with  oar 
friends  abroad.  We  depend  vitally  upon  the  continuance  of 
that  commaroe." 


Mir.  Breckenridge  Long,  Assistant  Secretary, 
State,  Washington,  B.C. 


of 


**The  sinister  consequences  of  the  conflict  through  which 
we  have  passed  permeate  aU  lands  and  all  conditions  of  life. 
Devastated  viUages,  barren  fields,  the  anDumbored  graves  of 


INTERNATIONAL  TRADE  CONFERENCE 


those  who  gave  their  lives  for  a  cause  or  who  died  in  war's 
maelstrom,  are  visible  and  accountable  reminders  of  the 


great  dertmctkML  But  the  amMtmral  purpoees  to  which  bar 

best  manufacturing  efforts  were  directed  under  the  necessi- 
ties of 


111^ 

1 

disturbance  to  political  institutions  and  the  impairment  of 
CM^Bdfiice,  these  and  many  others  are  not  disoernihle  by  the 
eye,  nor  measurable  by  set  standards,  and  are  consequently 
appreciated  with  diminished  understanding. 
*'Yet,  these  and  smiUar  matten  are  the  most  qppalfing  of 

the  results  of  war.  In  the  destruction  of  a  village  there  is 
definiteness  and  esiactitude.  It  is  capable  of  measurement  in 

as  to  the  coal 


mi  Ml  111 


Taioe.  It  18  sosoqptftle  of  emet 

of  reconstruction.  If  the  village  is  destroyed,  it  is  destroyed. 
Its  status  is  oertauL  The  time  and  labor  necessary  to  rebuild 
it  can  be  learned.  But,  in  the  complicated  industrial  life  of 
today  the  effect  of  a  great  shock  is  not  measurable  by  any 
known  method.  The  oonseqoeiices  of  the  shocka  appear  inter- 
mittently and  serve  to  magnify  our  fears,  in  the  same  manner 
as  t^iose  of  the  superstitious  and  ignorant— frightened  by 
manibstations  wUdi  surpass  their  simple  undendanding. 
Recurrences  of  disturbance  in  the  economic  and  industrial 
worlds  cause  us  anxiety,  because  we,  too^  are  ignorant  of  the 
trend  of  their  development*' 


54 


FINANCING  EUROPE'S  NECESSITIES 


VI 

Financing  Europe's  Necessities 

Report  of  Committee  on  Credit  and  Finance  urges 
formation  of  corporations  to  extend  long-term 
commercial  credits  to  ContinenUd  countries 

THE  Commitlee  on  Credit  and  Finance  was  invited  to 
meet  here  to  confer  with  business  and  fimncial  repre- 
sentatives of  England,  France,  Italy  and  Belgium,  for  a 
frank  discu88]<m  ci  fads  and  exchange  of  views.  It  was 
hoped  that  a  better  understanding  of  the  needs  involved  in 
Europe's  reoonatruction  and  of  the  resources  available  to 
meet  these  needs  would  thus  be  reached. 

The  Committee  began  its  sessions  on  Sunday,  October  19, 
with  the  purpose  of  develoiang  the  views  of  the  American 
bankers  and  business  men  on  the  Committee  who  came  from 
every  section  of  the  United  States.  This  group  has  met,  in 
turn,  with  the  distuiguished  Misaons  from  the  nations  repre- 
sented at  the  Conference  and  has  had  the  opportunity  of 
hearing  statements  of  extreme  value  on  the  economic,  indus- 
trial, coouneraal  and  financial  situation  in  tluxie  oountrjes. 

Discuss  Needs  qf  Other  Nations 

In  addition  to  this  information,  the  Committee  has  been 
advised  to  some  extait  of  the  needs  of  other  nations.  Many 
measures  have  been  discussed  informally  which  have  to  do 
with  supplying  the  necessities  of  life  to  the  stricken  areas  of 
Europe.  It  is  not  within  the  authority  of  the  CoiODiittee  to 
discuss  here  the  countries  not  represented  at  this  Confer«ice. 

The  entire  situation  has  taken  on  a  new  significance 
because  of  the  personal  contact  made  possible  by  the  presence 
of  men  of  such  ability  and  long  experience  in  international 
trade  and  finwoe.  The  qpoken  word  is  always  more  vivid 


INTBBNATIONAL  TBADE  CONFERENCE 


tiian  the  writim  word.  All  this  material  submitted  to  us  will 
be  presented  to  the  Chairman  of  the  Trade  Conference  within 
afewdays.  In  the  nieaiitiiiie  it  may  be  said  that,  aftw  hear- 
ing all  the  statements  made  here  and  studying  so  far  as  time 
permitted  the  facts  and  opinions  subnutted  by  foreign  andr 
AoMvicaii  dd^tes  to  this  Conference,  the  Committee 
regards  the  situation  not  as  one  of  finance  purely,  but  rather 
as  a  great  world  problem  arising  out  of  the  interplay  of  social, 
economic  and  political  forces  stirred  into  acticm  by  the  world 
war.  It  must  be  self-evident,  therefore,  that  no  single  all- 
inclusive  formula  will  solve  it. 

And  yet  we  bdieve  that  ways  and  means  can  be  found  to 
furnish  what  is  asked  of  us  by  the  countries  Which  have  told 
thdr  needs  to  the  Conference.  (H  ooorse,  ontil  the  factories 
are  again  in  full  operation  and  these  countries  have  thus  sub- 
stantially decreased  their  imports  and  incrmpl  their  expcntSy 
it  is  dear  that  they  must  not  be  expected  to  make  immedi- 
ate  payment  in  the  United  States  for  the  materials  they  need. 

Etirope  Can  Mm  its  ObUgaHom 

The  Missions  in  turn  have  emphasized  the  ability  and 
determination  erf  th^  nations  to  meet  their  c^ligatioim  as 
they  have  always  met  them  in  the  past.  They  have  stated 
that  they  expect  any  loans  negotiated  here  to  be  on  terms 
and  conditions  that  will  meet  our  domestic  situation.  The 
British  Mission  has  not  asked  for  any  special  aid  for  their 
country.  The  need  of  those  coonlries  which  do  desire  aid  of 
in  ftt  thk  time  is  in  the  nature  of  assistance  only  until  the 
peak  of  their  reconstruction  period  is  passed. 

The  Imglli  of  that  period  wiU  vary  in  diffm 
in  proportion  to  the  extent  of  the  destruction  and  also  in 
proportion  to  the  speed  with  which  their  internal  economic 
madiinery  can  be  fully  set  to  work.  The  foreign  Missions 
point  out  further  that  the  duration  of  their  period  of  trial  will 
depend  to  some  extent  upon  the  qieed  with  which  our  aid  is 
raidered.  They  are  dready  at  work.  But  without  help  from 


58 


FINANCING    EUBOPE'S  NBCBSSITIBS 


II  III 


Bipproach  a  maximum  of  industrial 

activity  for  a  long  period. 
How  are  these  needs  to  come,  met?  European  conditions  are 

such  that  to  a  large  extent  our  exports  must  be  made  on  long- 
time credits.  .We  find  evidence  of  beUef  among  American 
exporters  that  the  banka  should  provide  funds  for  tito 
ing  of  our  exports  to  Europe  in  such  a  manner  as  to  place 
upon  the  banks  the  burden  of  the  transaction. 

.  Bmk$  Anxious  to  Asrist 

The  banks  are  eager  to  help.  The  diffi^ty  is  that  com- 
mercial banks,  as  custodians  dT  funds,  mvier  obligation  to 
repay  deposits  on  demand,  are  prevented  both  by  law  and  by 
ioond  business  practice  from  tying  up  their  assets  in  long- 
time loans.  We  find  this  view  understood  and  ccmfirmed 
by  the  distinguished  bankers  among  our  European  guests. 
Amerksan  baidES  are  today  functioning  normally  in  the  fi^ 
ing  of  a  substantial  part  of  our  foreign  trade.  To  the  extent 
that  what  we  export  is  balanced  by  what  we  import,  banks 
can  very  wdl  make  the  temporary  advances  recpiired.  But 
the  problem  of  financing  the  excess  of  our  exports  over  our 
imports,  the  problem  of  siq^ying  the  Icmg-term  credits  to 
cover  the  balance  of  trade,  is  not  one  fcH*  the  banks  alone. 
Neither  can  the  banks  and  the  merchants  solve  it  alone, 
because  the  extent  to  which  mwchants  and  producers  can 
properly  tie  up  their  working  capital  in  long-time  advances 
to  foreign  customers  is  limited. 

To  the  extent  that  long-time  credits  are  required,  there- 
fore, it  is  clear  that  special  machinery  must  be  set  up  and 
that,  while  the  commerdal  banker  will  have  an  important 
role  to  play,  a  large  responsibility  must  rest  with  other  de- 
ments in  the  population,  notably  the  investment  banker,  the 
exporter,  the  producer  of  goods  tox  export,  and  most  impor- 
tant of  all,  the  American  investor. 

To  meet  the  problems  of  long-time  commercial  credits,  the 
Committee  bdievea  that  organiial 


nmi 


INTERNATIONAL   TRADE  CONFERENCE 


plated  in  pending  legislation  constitute  a  valuable  part  of  the 
new  madbdnery  needed  to  meet  the  present  emergency*  We 
htsfe  discmsed  at  the  Confermoe  the  possilrilities  of  oorpora- 
tions  formed  under  the  provisions  of  the  Edge  Bill,  the 
prim^pleB  of  which  have  been  indorsed  by  a  committee  of 
the  Ammcan  Bankers  Association  and  other  influential 
organizations.  We  recommend  that  steps  be  taken  to  ejqpe- 
dite  the  speedy  passage  of  that  legislatioii. 

We  have  given  study  also  to  the  powers  of  the  War  Finance 
Corporation  as  a  helpful  agency  in  the  present  situation. 
We  believe  foriher  carefdl  study  shoidd  be  given  to  both 
these  agencies  with  a  view  to  bringing  about,  not  Govern- 
ment initiative  in  this  work,  but  rather  the  establishment 
of  a  co-operative  relationship  which  will  give  hdp  and  en- 
couragement to  private  initiative  and  increase  the  public's 
ocnidenoe  in  tiie  crecUt  madiianry  to  be  set  19. 

Na  SubsHtui€  fwr  IndMdu^  Effort 

It  <yh^ild  be  stated  again  that  no  corporation  which  may 
be  set  up  can  take  the  place  of  individnd  ingenuity  and  the 
wide  variety  of  eiFort  and  skill  on  the  part  of  business  men 
and  bankerSy  working  oat  in  detail  with  business  men  and 

bankers  in  Europe,  specific  transactions.  Some  of  these  may 

be  individually  smalL  But  the  success  of  one  will  lead  nqpidly 
to  the  devdqoment  d  others,  until  in  the  aggregate  the 
business  done  will  be  large.  A  return  of  this  ncurmal  inter- 
course, we  bdKeve,  is  the  ultimate  objective  desired  on  both 
sides  of  the  water.  It  should  be  kept  constantly  in  mind  and 
mcouraged  even  while  we  are  devoting  ourselves  to  providing 
unusual  and  temporary  measure  to  meet  emergency  needs. 

This  is  the  attitude  in  which  the  Qimmittee  has  approadied 
the  formation  of  corporations  of  substantial  size,  under 
provisions  comflar  to  those  in  the  Edge  Bill.  An  (organization 
with  ample  capital,  with  facilities  to  obtain  full  credit  infor- 
abroad,  mid  with  a  personnel  whidi  will  iosnre  an 

60 


9  CI)  I 


FINANCING    EUROPE'S  NECESSITIES 


unquestioned  standing  at  home  and  abroad,  appears  to 
be  an  expedient  well  worth  support  at  this  time. 

When  such  a  corporation  is  established  and  is  ready  to 
issue  its  dd^entures,  it  is  our  beUeC  that  the  seoorities  offered 
to  tiie  American  public  should  stand  on  their  merits  as  an 
investment.  We  feel  that  as  a  security  is  made  available 
^rmigh  the  established  investment  selling  machinery  of  the 
United  States,  on  a  business  basis,  the  American  public  will 
demonstrate  that  it  has  a  deep  interest  in  the  splendid  peoples 
who  bore  the  greatest  share  of  the  war,  and  with  whom  our 
soldiers  fought  side  by  side  until  victory  was  won. 

Must  Re-establish  Law  and  Ord^ 

Nor  will  our  people  be  unmindful  of  the  fact  that  men, 
women  and  dbildren  in  some  sections  of  Europe  will  die  of 
disease  and  starvation  unless  help  is  speedily  forthcoming 
from  us.  And,  finally,  we  believe  the  investing  public  realizes 
that  the  world  is  suffimng  frmn  the  contagion  ct  social  unrest 
and  radicaUsm,  breeding  a  disregard  for  law  which  endangers 
the  very  existence  of  democratic  institutions.  It  is  to  our 
interest  to  aid  in  re-estaUishing  law  and  order  everywhere. 

The  Committee  is  deeply  impressed  with  the  necessity  of 
action  whidb  will  meet  as  quickly  as  possible  both  the  deans 
of  our  foreign  friends  and  the  wishes  of  our  own  people. 
There  is  no  lack  of  desire  to  help.  There  is  no  lack  of  vision 
as  to  the  deep  and  fuMeaiohmg  sigmficanne  of  the  problem, 
not  only  from  the  point  of  view  of  America,  but  from  the 
point  of  view  of  the  world.  But  the  Committee  has  found 
the  utUHM  divenaty  of  judgmmt  and  opimon  among 
thoughtful  men  of  wide  experience  in  these  matters  as  to  the 
proper  measures  to  be  taken.  And  this  is  not  unnaturaL  The 
world  situaticm  today  presents  the  greatest  financial  prob- 
lem of  history.  Never  in  peace  or  war  has  there  been  a  situa- 
tion involving  on  the  (me  hand  sudh  a  variety  of  divergent 
requirements,  and  sudi  a  complication  of  difficulties  in  the 
way  of  meeting  those  requirements  promptiy  and  soundly. 


61 


INTEBNATIONAL   TRADE  CONFEBENCB 


And  yet  widi  tbe  vwy  difficiilty  <rf  the  problem  there  goes 
a  challenge  to  the  skiU,  the  ingenuity  and  the  pubhc  spirit  of 
America,  Buainess  men  and  banlwra  can 
rf  they  have  the  active  support  of  the  nation,  of  labor,  of  the 
farmers,  of  the  professional  men  and  women,  and  of  the  prat, 
and  the  synipathetic  coKjpeMtion  of  publfc  It  is  a 

awttcr  for  study,  for  wise  counsel,  and  for  action  moving  fc». 
ward  in  a  sure  and  condusive  way  becaoae  it  is  a  ri^t  way. 

Looking  to  the  fulara,  the  problein  must  be  approached 
so  as  to  meet  not  only  the  urgent  needs  of  the  moment  but 
also  to  lay  the  foundations  for  a  broad,  «MMe  and  world- 
cmbfadng  knowledge,  on  the  part  of  Americans,  of  foreign 
mvestment.  Economic  isolation  is  today  a  contradictioii  in 
terms.  If  we  do  not  now  pwparo  to  do  oiir  sliai^  we  shall 
laost  sorely  find  in  another  generation  that  America  has  not 
held  her  proper  position  in  world  affairs. 

Recommeadi  Pemument  CammHtm  cm  Fhmncm 

The  Committee  beheves  that  understanding  of  the  sitoatioii 
has  been  distincdy  advanced  by  the  Conference.  But  the 
great  pfoblems  presented  require  continuous  study  and  co- 
ordination. Therefore,  the  Ck)mnutteef600iiuneods  that  anew 
ooflunittee  shaH  inunediately  be  appointed  to  carry  on  the 
work,  and  to  put  to  practical  use  the  material  accumulated. 

Itis  felt  that  the  new  comBiitlee  shonM  rapiesent  the 
WVMfflMity  of  the  entire  country  in  meeting  this  national 
emergency.  It  should  be  so  constituted,  either  in  Hs  full 
m^nbership,  or  through  a  snlnxMnniittee  as  to  be  able  to 
«vo*e  at  once  a  substantial  amount  of  time  to  the  work  in 
hand,  to  consult  with  all  the  interests  mvolved,  and  to  keep 
at  the  job  until  it  is  finished.  Members  of  the  present  Com- 
mittee  on  Credit  and  Finance  are  prepared  to  join  with  this 
new  committee  if  desired.  We  believe  that  your  new  com- 
mitlee  will  leoeive  the  active  co-operation  of  the  country, 
and  that  it  can  proceed  to  the  actual  definition  and  effective 
working  epilation  of  the  pnnMod  measnres  necessary. 


BU B O P E  •  S  M A T E B I A L  NEEDS 

* 

VII 

Europe's  Material  Needs 

Eight  American  committees  summarize  the  results  of 
conferences  with  special  British^  French, 

Belgian  and  Italian  Committees 

Committee  on  Reconstruction  Supplies 

rpHECknmittee  on  Becooslraetion  Sui^^ 

pleasant  and  profitdde  series  of  meetings  and  discussions 
with  corresponding  committees  from  the  visiting  delegations. 

The  Committoe's  plan  of  open^ion  was  aunple  wad  doecL 
We  endeavored  to  ascertain  from  our  friends  what  things 
they  eopected  to  secure  from  the  United  States,  and  in  what 
quantities  and  at  what  rate  of  delivery.  We  tried  to  asmrtain 
ftlfln  what  their  own  immediate  possibilities  of  production  are 
and  what  thmgs  they  are  pnfiaied  to  send  to  us.  We 
requested  them  to  describe  to  us  thdr  more  urgent  proUans 
in  reconstruction  and  tried  to  suggest  expedients  whereby 
those  pfoMems  mie^t  be  simplified.  We  tried  by  varioos 
means  to  reconcile  differing  points  of  view  which  might  stand 
in  the  way  of  carrying  out  the  intentions  of  this  Conference. 

Upcm  an  points  raised  we  found  our  guests  sidoididly 
equipped  with  information  and  fully  prepared  to  meet  the 
membm  of  our  Committee--even  the  most  tienhniC'al  of 
them — quite  upon  thdr  own  ground. 

Summary  of  BelgUm  RMubrmnmUs 

Detailed  rq>orts  upon  the  {Hrogress  of  our  Committee 
already  have  been  provided  tor  the  Chamb^  and  we  assume 
will  be  made  available  in  proper  time.  For  the  present  pur- 
pose and  briefly,  the  following  summaries  are  submitted: 

The  Belgians  need  from  us,  first  of  all,  money,  then  tools, 
coalt  coke,  (hI,  mining  machinery,  raikoad  locomotives  and 


63 


INTERNATIONAL  TRADE  CONFERENCE 

lumber.  Their  representatives  state  that  because  of  the 
imfinrcvaUe  rate  of  eandiaiige  and  because  of  our  higher 
prices,  expensive  freights  and  slower  deliveries  they  probably 
will  be  obliged  to  purchase  in  Germany  goods  which  they 
would  mudi  prefer  to  purdiaae  fran  us. 

They  tell  us  that  the  work  of  reconstruction  in  Belgium  is 
pr  opeediug  rapidly ;  that  their  peofie  have  gone  back  to  wodL 
in  a  gratifying  manner;  that  the  present  working  day  has 
been  shortened  to  eight  hours  because  of  pressure  from  labor, 
but  the  unit  effidency  is  quite  19  to  the  pie^war  standard. 

Itaiy  Requires  Agricuiturai  Implements 

Italy's  reconstmetioii  proMem  is  principally  agricaltaralt 

due  to  the  fact  that  about  90  per  cent  of  her  people  are 
engaged  in  farming.  They  need  agricultural  machinery  in 
eonsidmMe  quantities,  also  machinery  for  ditch-digging  and 
drainage  work.  They  also  need  assistance  in  the  rebuilding 
and  re-equqyping  of  their  fishfiriee. 

Their  need  in  the  matter  of  housing  is  very  great  and  they 
stress  tiie  importance  of  the  employment  of  American 
expedients  in  rapid  construction  of  workmen's  houses. 
They  need  coal,  oil  and  a  wide  variety  of  materials,  in  the 
jNToviding  of  which  the  United  States  should  be  able  to  play 
a  most  important  part  They  also  need  eirtensive  assistance 
in  connection  with  harbor  improvements.  In  general,  their 
needs  for  our  goods  are  oonsidmUe,  and  not  the  least  of 
fliem  is  their  need  of  money. 

England,  as  stated  by  their  Reconstruction  Supplies  Com- 
mittee, has  no  reconstniction  problem  which  ,  they  are  not 
fully  qualified  to  take  care  of  themselves.  The  housing  of 
British  labor  was  discussed  at  length,  but  without  leaving  the 
impression  that  we  were  to  have  any  part  in  its  sduticm. 

Their  Committee  also  discussed  most  interestingly  the 
labor  conditimis  in  En^^and,  and,  in  a  gmend  way,  those 
existing  throughout  Europe.  The  impression  was  conveyed 
that  the  labor  problem  in  Europe,  while  serious,  will  be 


EUROPE'S   MATERIAL  NEEDS 


solved,  and  that  the  radicd  ekmei^  thoo^i  active  at 

present,  must  in  time  yield  to  the  recognized  power  of  law 
and  ofder^  Ref^ence  was  made  also  to  the  general  problem 
of  financing  the  requirements  <rf  the  more  serioudy  injured 
of  tiie  European  countries,  and  to  the  exceedingly  important 
piat  wUdi  the  United  Slates  will  play  in  this  connection. 

The  French  Committee  submitted  a  particularly  complete 
r^rt  xxgaa  their  situation.  It  presented  an  interesting  and 
surprimng  statmiafit  dt  the  reconstruction  wodk  which  has 
already  taken  place  in  France,  and  tended  to  show  that  unem- 
ployment is  Himinkhing  rapidly,  agricultural  reconstruction 
has  progressed  substantially,  the  peoiJeare  going  badk  to  worli* 
transportation  faciUties,  such  as  railroads  and  canals  destroyed 
during  the  war,  are  rapidly  approaching  th^  pre-war  con- 
dition, immense  new  public  works,  railroads,  drainage  pro- 
jects, harbors,  etc.,  are  being  planned.  In  general,  the 
Yteofh  situation  as  regards  industry  and  ooimneioe  is  fsr 
and  away  in  advance  of  what  is  ratiier  generally  betieved  in 
this  country  to  be  the  case. 

Wrmn^  Feiki9  M  Wuijfk^i  md  SMing 

The  Frendi  Ccxnniittee  stressed  the  importance  of  pro- 
ceeding along  reconstruction  lines  which  will  recognne 
sound  economic  principles.  They  propose  to  buy  where  the 
buying  is  best,  and  to  sdl  where  they  can  do  so  with  greatest 
benefit  to  France.  They  emphasize  the  importance  whidi 
thev  dq[K)eits  of  iron  wUl  represent  in  the  work  of  Frendi 
reconstruction,  and  referred  to  the  great  quantities  of  lumber, 
wheat,  and  other  materials  to  be  found  in  the  French  colonies 
and  which  could  be  tran^orted  to  France  in  French  ships. 

They  need,  as  do  Belgium  and  Italy,  money,  lumbet» 
machinery,  automatic  car  couplers  and  raihoad  signal 
systems  aiKl  other  equipment  aoocssary  to  the  improvement 
of  their  transportation  systems,  and  a  number  of  lines  which 
under  normal  ccmditions  we  might  be  able  to  provide,  but 
whidb^  as  cdnditiooa  stand,  woidd  bed^ficult  moA  in  memj 


INTERNATIONAL  TRADE  CONFERENCE 


cases  impossible  to  purchase  from  us  because  of  exchange 
difficulties  and  the  high  cost  of  ocean  tonnage. 

The  Cooumttee  regrets  that  more  time  was  not  available 
for  its  purposes.  It  believes,  however,  that  the  infonnaAion 
we  have  is  vahiable  and  we  afo  particdariy  impressed  with 
the  importance  <rf  the  friendly  acquaintance  and  the  better 
understanding  which  have  come  to  us  and  whioh  we  hope 
have  come  to  oar  guerts  through  this  firet  meeting. 

Committee  on  Foodstuffs 

VOUR  special  Committee  on  Foodstuffs,  with  twenty-four 
members,  representing  a  wide  variety  of  American  natuial 
foods  and  prepared  products,  and  ooming  ftom  all  over  the 
country,  has  held  meetings  with  representatives  of  each  of 
the  foreign  missions. 

At  these  meetings  the  food  situation  as  at  fwesent  and  for 
the  oommg  year <rf Bdgium,  France,  Italy  and  Great  Britain; 
the  disastrous  results  on  each  of  these  countries  of  the  food 
conditions,  especially  in  the  way  of  lessened  production  and 
restricted  hnportations,  produced  by  war;  the  efforts  being 
made  in  each  country  to  meet  and  remedy  these  oniditiaiis 
by  controlled  food  use  and  stimulation  of  production;  together 
with  detafled  statistical  statements  of  the  food  importations 
needed  by  each  country  during  the  period  until  the  harvests 
of  1920.  especially  from  the  United  States,  have  all  been  pie. 
sented  and  fully  discussed. 

F rom  the  lists  made  by  the  foragn  representatives  ot  thdr 
needs  of  food  unportation  firon  America  it  is  apparent  that 
there  exists,  or  will  be  produced,  a  sufficient  American 
surplus  to  provide  pcactically  aU  the  foodstdb  listed,  in  the 
quantities  asked  for. 

But  it  is  also  apparent  that  the  governments  and  buyers  of 
the  foreign  countries  are  faced  with  certain  serious  diffi- 
culties m  the  financing  of  their  purchases  from  the  United 
States,  chief  of  which  are  enshaage  rates  which  at  present 
are  greatly  to  the  disadvantage  of  foreign  purchasers. 


96 


EUROPE'S  MATERIAL  NEEDS 


'  The  principal  remedies  suggested  for  meeting  this  major 
difficulty  were  two.  One,  made  by  the  foreign  representa- 
tives, is  the  extensiMi  of  kng4enn  credits  by  American  sellers 
to  the  European  purcheisers.  The  other,  made  by  the  Ameri- 
can Committee  members,  is  the  high  desirability  of  increased 


rta 


MlllJii  ill  1 1 


the  foreign  coimlrieB  to  Aniefica  of  any  and 

all  of  their  own  special  products  suitable  for  the  American 
trade.  A  most  sympathetic  attitude  toward  both  of  these 
mattm  was  edubited  by  the  committee  membeni*  and 

various  practical  suggestions  were  made  looking  toward  the 


o£  these  remedies. 
It  was  suggested  that  the  foreign  seUets  shook!  attempt  a 
wider  and  more  general  distribution  of  their  products  in 
America,  and  in  particular  should  arrange  to  avail  them* 
selves  of  existing  American  trade  organizations  for  exploita-i 
tion  and  distribution.  It  was  stated  by  various  gentlemen 
of  the  Committee,  represmting  certain  large  American  food 
trades,  that  there  undoubtedly  exist  great  possibiUties  in  the 
way  of  extending  in  this  country,  particularly  at  present, 

)roducts  and  specialties 


iiiii 


the  use  of  many  high-grade  fc 
prepared  by  the  manufacturers  of  the  European  countries 
represented  at  the  conference. 

Jtooommtfwb  CkummmetU  Aakm  en  Cmmit 

In  ccimecticm  with  the  need  for  qpedal  temporary  credit 

arrangements  for  European  purchasers,  Ihe  Committee, 
being  particularly  impressed  by  the  peculiar  needs  of  the 
countries  associated  with  us  in  the  war  for  the  importatai 
from  the  United  States  of  large  quantities  of  cereals,  suggests 
to  the  Executive  Committee  that  sympathetic  consideration 
be  e^ven  to  the  idea  of  making  recommendatlciis  to  the 
President  in  this  matter.  It  may  be  appropriate  to  suggest 
that  as  a  matter  Ixyth  (tf  wise  pubUc  policy  and  of  an  ejctension 
of  our  humanitarian  efiForts  in  behalf  of  our  stricken  asso- 
ciates in  war,  the  President  should  exercise  his  authority 
mider  the  Food  Ccntooi  Act  to  provide  these  nseded  cereals 


67 


) 


INTERNATIONAL  TRADE  CONFERENCE 

in  BiyA  qiiiftii^iftiflft  and  QQ  aach  terma  of  credit  as  may  seem 
to  liim  wise  and  safe* 

It  is  fidly  realized  by  the  Committee  that  the  matter  of 
finance  and  cwdit  ia  the  partioidar  province  of  a  special 
committee.  But  the  conferences  of  the  FoodstufcOwmiittaa 
mth  the  foreign  imaaicHis  have  developed  so  clearly  the  fact 
liiat  the  only  serious  difficulty  in  meeting  the  abiokite  food 
needs  of  our  associates  in  war  and  in  the  development  of  a 
deanJde  fore^  market  for  the  American  food  supplies 
created  by  the  stimulated  production  due  to  the  war  ntoa^ 
tion,  is  lack  of  a  satisfactory  arrangement  for  temporary 
sympathetic  treatmmt  of  foreign  buyers  as  regards  finance 
and  credit.  The  Committee,  therefore,  is  construMd  to 
make  as  a  qpecsial  reoommendation  to  you  the  desirability  of 
an  effort  to  effect  sudi  an  arrangment 

Your  Committee  has  been  impressed  by  the  mutual  advan- 
tage that  can  accrue  to  America  and  to  the  European  coun- 
tries by  a  continuation  of  such  conferences  as  the  present; 
and  stron^y  recommends  some  form  of  permanent  inter- 
national organization  which  will  insure  this  cootmuation. 

Committee  on  Metals 

THE  Oinmiitlee  OB  M^ab  repcrt*  that  it  has  had  f  ull  and 
frank  consultation  with  the  Committees  on  Metab  reiwe- 
aenting  the  Belgian,  British,  French  and  Italian  Commissions, 
at  which  the  situation  in  aU  these  countries  with  reference  to 
their  needs  for  supplies  of  metals  in  order  to  effect  the 
re-establishment  of  their  industries  was  fully  presented  and 
freely  discussed. 

In  gneral  the  reports  showed  a  greater  stabiUty  of  labor 
conditions  and  less  menace  from  socaal  unrest  thmi  pfenooK 
public  information  had  indicated.  These  discussions  also 
showed  that  the  imspect  for  the  complete  re^tabliahnaent 
of  industry  in  those  countries  is  decidedly  hoprful,  provided 
s^pfifls  of  raw  matraials  and  goods  can  be  secured.  So  far 


68 


EUROPE'S  MATERIAL  NEEDS 


m  metals  «re  ooooemed,  it  was  diedoied  that  the  require- 

m&nts  for  France  for  next  year  are  estimated  at  100,000 
tons  of  ship  plates  and  90,000  to  100,000  tons  of  copper. 
The  estimates  of  their  requirements  aobimtted  by  the 

Italian  Committee  included  the  following  annual  quantities 


over  the  next  five  years: 

Foundry  pig  iron  200,000  tons 

Plates  and  shapes   60,000  ** 

Ingots,  semi^nished  steel*  rails  215,000  * 

Scrap  iron.!  100,000 

Tin  plates   5,000  " 

Colder   15,000  |* 

Various  other  metals   10,000  ** 


Total  metal  requirements  605,000 


Electrificatian  qf  RaUroadi  Nojected 

Plans  are  under  coosidemtion  in  France  and  Italy  for 

extensive  electrification  of  railways.  If  put  into  operation, 
these  wiljl  require  considerable  additional  supplies  of  copper 
over  ihose  stated  above. 

The  Belgian  requirements  are  limited  to  semi-finished  sted 
and  eoHwr  sheets,  but  the  determination  of  aniraximate 
quantities  needed  is  so  depend«t  upm  the  rate  of  restoration 
of  the  Belgian  works  and  the  supply  of  necessary  fuel  as  to 
pwriPt  for  the  praaent  the  malcBMt  of  defaite  esti 

The  meeting  with  the  British  delegation  developed  the 
fact  that  no  specific  requirements  have  been  formulated,  and 
that  Great  Britain  ^QMC^  to  be  able  to  obtain  att  the  floppliflB 
of  raw  materials  necessary  for  her  normal  trade,  without  any 
speeial  arrangerawts  thoefor.  The  &itish  chairman  stated 
that  **the  disject  of  America  and  Great  Britain  ought  to  be 
how  best  to  utilize  their  outputs  for  the  benefit  of  the  devas- 
tatedaraaa.  Great IMtain has dbeady sent oonsidardhle eoii* 
signments  to  the  Continent  in  the  way  of  metal  goods  for 
reconstruction  purposes.  We  expect  not  only  to  be  able  ta 
eoDtimie  this,  hot      to  iMeaae  ttie 


INTERNATIONAL  TRADE  CONFEBENgl? 

•  Conadfiratkii  of  the  sHuatkHi  presented  by  the  French, 
itefian  and  Belgian  Committees  disdooed  the  fact  that  the 
American  industries  either  have  produced,  or  are  capable  of 
iffodiraiigrsii^^hiaes  adequate  to  meet  these  requirements, 
provided  satisfactory  and  effective  meanis  of  flnanciiig  the 
tranaactioiie  are  arranged.  While  to  a  certain  degree  and 
in  some  lines  the  American  uidastry  would  be  able  to  take 
care  of  a  part  of  these  requirements  in  normal  commercial 
traosactiaiis,  the  agpegato  of  requirements  involving  long 
credits  is  so  large  that  some  spedal  financial  machinery  must 
be  arranged  in  order  to  enable  their  satisfactory  fulfillment. 

In  view  of  the  fact  that  these  requirements  present  a  prob- 
lem beyond  the  scope  of  the  normal  finandal  madiinery,  it  is 
the  judgment  of  the  Committee  on  Metals  that  some  emer- 
gency legialallon  such  as  is  contoiqdated  by  the  Edg^  Bill 
now  before  Congress,  should  be  enacted  The  utilisation  of 
such  emergency  fadlities  for  financing  exports  would  enable 
the  American  metab  industries  to  meet  Belgian.  French  and 

Italian  requirements  with  the  greatest  possible  despatch  andf 
so  to  contiiboto  to  the  ptompt  restoration  of  normal  con- 
ditions in  Europe. 

*  ■  • 

Committee  on  Shipping 

SEPARATED  from  manyother  matters  that  were  suggested 
to  the  ^pping  Committee  for  consideration  by  the  viail-r 
ing  delegates,  Ihem  are  a  number  of  outstanding  facts  to  which 
attention  is  herein  particularly  directed. 

Belgium  desires  lower  freight  rates.  It  was  the  suggestion 
of  the  Belgian  ddegates  that  if  there  were  a  free  mark  et  for 
tonnage  throughout  the  world,  rates  would  fdl  and  Belgium 

would  participate  in  the  advantage  of  the  decline. 
There  is  a  queslion,  however,  if  it  is  possible  to  free  tonnage 

in  the  manner  desired.  England  is  in  great  need  of  food- 
rtoffs.  Indeed,  it  has  been  said  that  England's  condition  in 
this  respect  in  Hie  odming  winter  will  be  man  severe  than  it 
was  at  any  time  during  the  war.  Under  these  circumstances, 

70 


S  n  :B  O  P  E  '  S   MATE  R  I  A  L  N  S  S  D  S 


H  is  hardly  to  be  expected  that  Britiah  fliiipping  will  be  left 
free  to  seek  the  most  profitable  trades,  and  until  that  pec- 
mission,  obviously  there  can  be  no  such  thing  as  free  ton^ 

Italy,  although  she  has  lost  heavily  in  tonnage  during  the 
war,  is  in  a  fair  way  of  recouping  those  losses  ^Vo^ig^  the 
oonstraction  of  fliew  tonnage  in  her  own  yards,  by  purchases 
abroad,  and  by  the  acquisition  of  Austro-Hungarian  tomiAge 
thatioimeriyJiailedfioia  Adriatic 

tonnage  to  Suppiy  Italy  wlih  Coitti 

Italy's: great  neeesdty  is  coal— ooal  with  whidi  tore-estab- 
lish herself  industrially,  for  the  purposes  of  transportation, 
and  for  the  health  and  comfort  of  her  people.  This  necessity 
mwt  be  met  and  it  can  be  met  only  by  Ammca.  Previous 
to  the  war,  Italy  imported  over  ten  million  tons  of  coal 
annually  from  England,  and  lesser  amounte  from  Fnnoe, 
(Serasany  and  the  United  States.  But  now  importations 
from  these  countries,  other  than  the  United  States,  have  so 
greatly-  diminished  as  neoessarily  to  oblige  Italy  to  rely 
almost  wholly  upon  the  United  States.  Unless  the  United 
States  fulfills  in  this  respect  Italian  expectations,  there  must 
necessarily  result  throughout  Italy  great  distress. 

The  Conunittee,  therefore,  believes  that  it  is  of  the  highest 
importance  that  thm  should  be  a  oo-ordinatkm  of  effort  in 
the  United  States  to  come  to  Italy's  rescue.  It  is  with  great 
satisfaction  that  the  Conunittee  recognizes  the  fact  that  of 
all  the  nations  in  need  of  coal,  Italy  is  contributing  more 
largely  than  any  other  in  providing  for  her  own  necessities. 

France  is  in  need  of  tonnage  and  of  shipbuilding  materials, 
puring  the  war,  France  was  unable  to  use  her  shipyards  for 
the  construction  of  mm^hant  tonnage  because  the  yards  had 
beeijt  devoted  wholly  to  war  purposes.  iUtor  the  b^finnixig  of 
the  war,  but  brfore  the  United  States  entered  the  war,  this 
tonnage  was  all  requisitioned.  Up  to  the  present  moment, 
no  srttkmeffit  Ims  be«a  made  for  the  oompeBsation  of  the 

71 


INTERNATIONAL  TRADE  CONFERENCE 

iwivate  owners  of  that  requisitioned  tonnage.  The  claims  of 
FMnoe  akne,  oC  all  the  nations  similarly  situated,  have  not 
been  settled.  The  Committee  is  advised,  howevw,  thai  the 
wbfAi  matter  is  the  subject  of  present  negotiation  and  that  a 
satisfactory  adjaslmeiit  at  thsw  claims  will  sooa  be  reaped. 

France  would  like  to  purchase  from  the  Shipping  Board, « 
have  huH  in  American  sh^yards,  several  hundred  thousand 
tons  of  merchant  diips,  bat  wm  d  tbm  de»e  w«w  P*^"'^ 
fulfillment  by  the  Shipping  Board,  the  prices  at  wliidi  Ameri- 
can gomnmnt  shipfimg  is  now  being  held  precludes  any 
thought  of  seUing  American  tmrnage  to  Ftum  aft  thb  time. 
But  these  are  matters  to  which  the  Committee  proposes  to 
gire  furtlMr  oooskkMtioB. 

* 

GfMrt  BHtmIn  AivftM  Compttitkm 

The  British  delegates  akne  had  no  nqoeat  to  make  for 
material  support  from  the  United  States  in  the  le  establish* 
ment  ol  bownmchant  marine  and  overseas  trade,  except  the 
good  wiU  of  the  American  people.  HowxaUe  competition 
on  the  part  of  the  United  States  with  England  m  the  ocean- 
carrying  trades  o«  ths  world  was  heartily  invited,  coupled 
with  the  hope  that  the  snrrivai  of  the  fitlesfc  would  he  the 
keynote  of  the  international  competition. 

It  early  appeared  to  yoor  Committee  that  an  adequate 
amsideration  of  the  problems  herdn  briefly  set  forth  was 
impossihte  during  tiie  life  of  this  Conference.  There  are  too 
many  interests  involved  to  be  reached  and  broo^  witiun  a 
possible  field  of  co-operation  to  permit  of  any  specifio  actaoa 
at  this  time.  In  view  off  this  circumstance,  therefore,  your 
Committee  has  appointed  two  soinxmndttees— one  to  de^ 
witii  all  of  the  problems,  save  that  of  coal,  that  have  been 
presented,  and  anodier  to  devote  itself  exdusively  to  the 
coal  question,  particularly  as  H  affects  Italy.  This  latter 
godb-eommittee  is  to  act  in  aw)peration  with  a  sub-committee 
of  the  Coal  Committee.  Already  the  two  ooMmittees  have 
had  a  preliminary  meeting,  and  it  may  be  afBrmed  with  coo- 

72 


BUBOPS'S    MAT£BIAL  NEEDS 


iMflndtale  mnrMMffi  dial  tf  the  toilat^e  plaii  of  prooedine 

marked  out  is  carried  into  effect,  it  will  result  not  only  to  the 
very  great  benefit  of  the  Italian  people,  but  will  coatiibttte 
to  the  estabfiahment  of  a  eoal  trade  with  the  Mediterrasean 
ports  that  will  be  of  so  great  advantage  to  the  United  States 
hi  the  yeafs  to  ooaae  aa  aloM  to  jiMtifyt  firaat  the  ymmfpmX 
of  an  American  citizen,  the  calling  of  this  Conference. 

Committee  Oil  Coal  Sopply 

rpHE  Coal  Committee  met  with  the  ddegirtioiia  bam 

^  France,  Italy  and  Belgium,  according  to  schedule. 

The  French  delegation  stated  that  the  total  requirements 
of  France  would  be  about  60,000,000  tons  per  year.  During 
the  present  winter  it  seems  unlikely  that  Germany  will  be 
aUe  to  deliver  the  coal  to  France  stipulated  by  the  peace 
treaty.  Allowing,  howev^,  for  tiie  imports  that  can  be 
obtained  from  Germany,  Belgium  and  England,  more  than 
22,000,000  tons  of  coal  are  now  required  from  the  United 
States.  For  some  years  to  come,  several  million  tons  must  be 
imported  from  America. 

Members  of  the  French  delegation  expressed  the  belief 
that  control  of  imports  and  distribution  of  coal  in  France  by 
the  French  Government  would  be  continued  for  p^hapa 
sue  months;  thereafter  it  was  expected  that  the  business 
would  return  to  private  hands.  The  Committee  emphasized 
the  high  price  <^  American  coal  delivered  in  France  due  to 
high  ocean  freights.  They  also  spoke  of  the  difficulty  of 
obtaining  sufficient  tonnage  to  transport  coaL 

The  Italian  delegation  dwdt  on  the  importance  of  dev^ 
oping  a  permanent  coal  trade  between  the  United  States  and 
Italy,  and  said  that  Italy  would  necessarily  now  loc^  to  this 
nation  for  several  million  tons  annually.  They  also  pointed 
oat  the  exoeesive  coat  to  Italy  of  presmt  imports  of  American 
eoal  with  ocean  freights  so  high  and  with  exchange  rates  so 
uiliranAile  to  Italy*  Speaking  of  tlM  aeurailar  of  ahippiog  to 


J 


INTERNATIONAL  TBADE  CONFEttENCE 

tranqpon  ooal  to  Itdly»  the  delegates  eiplained  that  Italy  is 

using  some  of  her  own  ships  and  is  chartering  other  ships  to 
oanry  her  ooal  imports  and  is  thuft  heliung  to  bear  the  burden 
ef  transporting  ooal  acrosB  the  oceim. 

The  conference  wifli  the  Belgian  representatives  developed 
teA  that  Belpim  18  ]i0ir  pcodn^^  per  cent  of 

her  pre-war  coal  output.  Her  chief  needs  are  for  ookhif  and 
other  special  coals;  but  with  the  present  prices  of  American 
ood  so  high  ivhen  defivered  in  Be^ium,  on  M 
£reights»  no  important  purchases  of  coal  are  to  be  expected. 

Warm  Against  Activities  oS  Speculators 

The  Committee  explained  the  nature  of  American  coals 
and  the  different  kinds  which  are  available  for  export  and  for 
use  abroad.  It  mentioned  the  probalnlity  of  a  strike  of  Utu^ 
minous  coal  miners  on  November  1st.  The  committee  felt  it 
necessary  to  warn  European  purchasers  against  the  activities 
of  irresponsible  speculates  in  the  export  ooal  trade,  many  of 
whom  have  never  had  any  connection  with  the  coal  business, 
and  have  no  expectatioii  of  continuing  in  it»  and  are  offering 
to  sell  coals  which  they  cannot  obtain  and  deliver.  It  ex- 
plained that  the  Tidewater  coal  pools,  conducted  by  the 
United  States  Raiboad  Administratkm,  prevent  the  ddivery 
of  coal  of  stipulated  character  on  export  contracts  when  the 
coal  is  handled  through  these  pools.  This  statement  devel- 
oped the  fact  that  European  buyers  are  opposed  to  accepting 
pool  coal  and  do  so  only  because  they  may  not  be  able  to 
obtain  what  they  require  outside  the  pools. 

Credits  and  financial  arrangements  were  mentioned  but 
were  left  to  the  Committee  on  Credit  and  Finance  with  the 
assurance  that  American  coal  exporters  would  do  their  f uU 
part  in  carrying  out  any  recommendations  of  that  Committee. 

The  Conference  devekqped  the  unanimous  opinion  that 
there  is  no  European  denMnd  for  anthradte,  but  that  the 
need  is  for  bituminous  coal.  It  was  made  clear  that,  barring 

mj/fmiub.  Amerim  can  prodooe  anqple  bituminous  ooal  of  the 

74 


£  U  B  O  P  £ ' S    MATERIAL  NEEDS 


fluidities  and  kmds  sufl&cieiil  to  supply  the  needs  of  our  alfies 

in  Europe,  but  that  scarcity  of  ocean  shipping  and  high 
ocean  freight  rates  are  preventing  the  shipment  of  the  coal 
required.  l%e  further  fact  was  brought  out  that  if  our  over- 
seas coal  trade  is  to  be  much  expanded,  better  facilities  must 
be  provided  for  export  sh^ments  at  American  ooal  ports  and 
for  discharge  at  European  iwrts. 

The  conferences  also  devdoped  unanimity  of  sentiment 
that  the  task  of  supplying  our  allies  with  sufficient  coal  can 
best  be  handled  through  the  normal  activities  of  the  business 
men  of  the  nations  involved,  free  from  lestricticiis  or  inter- 
ference by  their  governments. 

Committee  on  Petroleum 

nnHE  Petroleum  Committee  had  the  fdeasure  of  meeting 

with  the  representatives  from  Belgium,  France  and  Italy 
and  discussed  with  them  genial  questi<Mis  in  connection  with 
the  petroleum  requirmimts  of  thdr  respective  countries  and 
more  particularly  the  question  of  their  possible  needs  of  fuel 
oil  to  suiq[demait  the  diminishing  ooal  suHily. 

Summarized  the  results  of  those  meetings  were  as  follows: 
In  Belgium  now  there  is  little  or  practically  no  storage  or 
distributing  fadlities  for  the  handling  of  fuel  oil.  Belgium  is 
a  coal-producing  country  and  we  were  advised  that  its  mines 
are  now  qperating  86  per  omt  (tf  their  pre-war  capacity.  It 
was  the  expectation  of  the  Belgian  delegation  that,  given  the 
necessary  time  for  reconstruction  and  rehabilitation,  there 
would  he  suffidmt  coal  available  to  cover  their  fud  needs. 
They  reported  that  their  supplies  of  other  petroleum  products 
wete  in  every  way  adequate  to  take  care  of  their  ounent 
domestic  requirmients. 

The  French  delegation  stated  that  the  output  el  French 
coal  mines  had  never  been  sufficient  for  her  industrial  needs 
fimd  the  destruction  of  the  mines  in  the  north  had  not  been 
comoensated  for  bv  the  aofluiaition  of  the  Saar  distrifrt  For 


76 


J 


INTERNATIONAL  TRADE  CONFEBBNCB 

these  reasoiia  Fnmoe  would  affioid  for  some  yean  to  oome  a 

constantly  increasing  market  for  fuel  oU. 

Providing  the  necessary  tank-ateamer  toiinage»  sAorage  and 
distrfliiiting  facifities,  as  weD  as  the  incidental  equipment 
necessary  to  the  burning  of  fuel  oil  were  obtainable,  the 
French  delegates  estimated  their  requireBicata  far  1920  as 
approsdmatdy  100,000  tons  <rf  fiiel  oil  per  month.  The  Petro- 
leum  Committee  advised  the  French  delegation  that  it 
would  not  be  di^Scote  for  the  American  petroleom  industry 
to  supply  their  requirements  of  fuel  oil  as  indicated,  subject 

being  secured. 


The  French  delegation  explained 

relatively  larger  consumption  of  gasoline  in  the  future  than 
there  had  be^  in  the  past  The  Amman  Conmnttee 
pointed  out  the  desirability  and  perhaps  the  necessity  of 
arranging  as  soon  as  possible,  that  the  French  requirements 
might  be  siqqplied  to  the  largest  extent  possible  with  gasoline 
of  United  States  standard  specifications. 

Fmi  Oa  /or  lUOkm  Locomatiim 

The  Italian  delegation  informed  us  that  there  were  no  coal 
mines  in  Italy  and  that  one  of  her  moat  pressing  problems 


r 

• 

was  an  a 

certain  number  of  locomotives  on  the  Italian  government 
railroads  had  abeady  been  adapted  to  bommg  fuel  oil  and 
that  contracts  for  additional  locomotives  specified  fuel-oil 
burners.  They  estimated  that  eventually,  as  soon  as  the 
necesaary  tomiage  and  other  fadlilies  could  be  created,  that 
Italy  might  be  able  to  use  4,000,000  tons  of  fuel  oil  yearly. 

Ibe  Italian  delegation  urged  that  American  capital  en- 
gaged in  the  petrdeum  business  should  join  with  Italian 
capital  in  the  formation  of  local  Italian  companies  to  under- 
take the  creation  of  the  necessary  f acililaes  not  oi^  for  the 
storage  and  distribution  of  fuel  oil,  but  also  for  the  comple- 
tion and  operation  of  two  or  three  refinerica  in  Italy, 


76 


BUBOPE'S    MATEBIAL   N  B  E  i>  S 


AD  irf  the  foreign  ddegations  pointed  out  the  difficidties 
arising  out  of  the  present  acute  exchange  situation,  which  was 
fully  reoogniaed  by  the  American  Comnuttee. 

The  following  resolution  was  adopted:  That  it  is  the  belief 
of  the  Petroleum  Committee  that  the  petroleum  industry  of 
the  United  States  w9  participate  in  any  plan  that  may  be 
worked  out  and  will  take  its  share  of  any  type  of  international 
bonds  or  other  forms  of  security  created  under  such  plan* 

A  report  in  detail  covering  the  proceedings  of  the  various 
meetings  will  be  prepared  and  may  be  had  upon  application 
to  the  United  Stales  Oiamber  of  CkinuMroe  or  tiie  American 
Petroleum  Institute. 

Committee  on  Chemicals 

T^EMOBILIZATION  of  war  industries  has  been  proQceding 
-^rapidly — particulariy  in  the  diemk»l  hidustry ,  which  was 
so  greatly  stimulated  during  the  war.  Much  of  the  chemical 
plant  eqpiqpinent  needed  for  war  production  has  gieat  value 
in  peace  times.  This  is  especially  true  in  agricultural  chmi- 
icaU  and  dyestuffs.  By  a  strange  coincidence,  plants  and 
cannon  eat  the  same  food,  and  nitrogen  compbunds,  adds, 
phosphorus,  potash  and  other  alkalies  and  chemicals  are 
basic  commodities,  both  in  war  and  peace.  We  are  still 
forging  swords  into  plowshares,"  as  in  biblical  tunes.  One 
of  the  difficulties  of  readjustment  and  use  is  that  war  needs 
stimulated  a  plant  equi|»nent  in  certaiii  lines  away  beyond 
immediate  peace  requirement,  and  years  of  n<»rmal  growth 
have  been  discounted.  On  the  other  hand,  c^dditional  equips 
ment  will  be  needed  to  round  o^t  development  m  peace- 
time lines  which  were  held  back  by  concentration  on  war 
needs. 

Before  the  war,  Germany  had  a  practical  monopoly  in 

several  chemical  lines,  and  as  it  is  easier  to  buy  than  to  make, 
other  countries  had  not  ig[>preciated  the  bapk)  natwe  of 
ch^nical  productfon  in  its  rdbition  to  national  safety  and  its 


77 


INTERNATIONAL  TRADE  CONFERENCE 


peculiar  ''key"  poeitkm  with  regard  to  the  making  of  many 
articles  not  at  all  rdkited  in  the  piABc  nund  to  dMBical 
production.  War  developments  brought  home  sharply  the 
need  oC  a  telf-cfxitaiiied  national  cbmiical  productioat  and 
of  an  army  of  trained  chemists.  Since  the  war,  mannfactuimf 
freqpiently  supported  by  their  governments,  have  been  work- 
ing to  ehsntfi  over  war  plants  to  peace  pioduotion  and  to 
round  out  the  output  to  the  end  that  their  countries  need 
not  go  abroad  for  the  bulk  oi  their  chemicals.  National 
diemical  mdependenoe  is  reoommended,  ptthaps  to  an  es- 
aggerated  degree,  for  the  reason  that  international  chemical 
ixunmeroe  is  important. 

The  two  countries  sending  representatives  of  the  ohemical 
industry  to  the  Conference  were  France  and  Italy. 

The  Fiendh  pivpose  is  to  develq[>  f urthv  and  c(»npletely 
its  chemical  and  electro-chemical  industry,  particular  atten- 
tion bdng  paid  to  dyestuib.  Following  a  strike  extending 
through  the  early  smimer  months,  their  (^anneal  labor 
situation  is  satisfactory.  Aside  from  the  procurement  of  wood 
distillation  prodncte,  thero  is  little  we  could  supply  them« 

Wm  Taktt  M  F^^h  Wnmm  am 

On  th«r  part»  the  main  output  hi  tonnage  and  value 
will  be  potash  from  Alsace.  The  French  ddegation  was 
informed  that  the  United  States  was  prepared  to  take  for 
the  coming  spring  planting  att  the  potash  Alsace  could  ship; 
that  a  small  importation  was  now  being  received,  but  that 
sti&es»  interior  tranqport  and  ocean  shipping  difiBculties  had 
so  far  prevented  any  large  movement  The  ocean  ahqpping 
difficulties  should  easily  be  overcome  as  many  ships  are 
letnndng  in  ballast.  It  wm  intimated  that  at  least  50,000 
tons  of  pure  potash,  contained  in,  say  200,000  tons  of  mfaBsd 
product,  could  be  spared  by  French  sources,  for  winter  and 
spring  movement,  tf  it  coidd  be  shipped. 

War  chemical  plants  are  being  changed  over  to  peace 
OSes.  FtodnctioB  in  considerable  vohune  would  be  secured 


78 


E  U  ROPE'S    MATERIAL  NEEDS 


as  socm  as  necessary  raw  materials  could  be  obtained.  A 
large  tonnage  of  American  phosphate  rock  could  be  used  but 
for  the  hie^  ocean  freights  now  prevailing.  Especial  attention 
is  to  be  given  by  the  Italian  Government  to  furthering  the  use 
of  fertilizers  in  crc^  production. 

Mr.  Qoartiari  was  strongly  of  the  (^inicm  that  American 
capital  could  find  profitable  and  helpful  occupation  in  Italy 
in  partnership  with  Italian  chemical  manufiscturers*  and  that 
it  could  contribute  experimce,  machinery  and  administration 
in  the  further  development  and  rounding  out  of  Italian 
dionical  manufacturing.  Italy  possessed  ine  chemists, 
skilled  engineers,  good  workers  and  relatively  cheap  electrical 
power.  He  stressed  the  fact  that  Italy  intended  to  deYelq[> 
her  dyestnffs  and  general  dmnical  industry  to  meet  her  own 
needs,  and  that  she  might  be  able  to  do  an  export  business. 
Italy  possesses  sulfdiur,  pyrites,  salt  and  other  raw  materiab 
in  abundance  and  woaM  call  for  litde  raw  material  from  the 
United  States,  benzol  being  one  of  the  exceptions.  As  to 
sales  by  Italy,  there  was  not  much  we  oodd  knport  beyiad 
that  now  coming  here,  such  as  citric  and  tartaric  acid,  etc. 

There  was  much  of  general  interest  discussed  at  these 
meetings,  such  as  reasonaUe  uniformity  in  contract  terms, 
specifications  and  methods  of  analysis  in  selling  for  export. 

Committee  on  Textiles 

T^HE  Textile  Committee  had  the  lurivikge  of  discusmg  in 
*^an  informal,  frank  and  intimate  manner  with  the  re- 
presentatives of  France,  Great  Britain,  Italy,  Belgium  and 
Portugal,  the  problems  of  the  re-estaWishment  of  the  textile 
industry  in  order  that  the  world-wide  shortage  of  clothing 
may  be  remedied  in  the  shortest  possible  time.. 

In  general,  the  European  nations  have  hem  the  manu- 
facturers of  textiles  for  export,  while  until  recently  America 
has  absorbed  the  entire  production  of  the  American  taxtila 
ndOs,  It  was  the  desire  of  your  Ckimnuttee  to  ascertain: 

79 


J 


I N T E  B NAT I ON A L  T R A D E  C O N F E R E N C  B 

FIrsI:  Wliat  they  irelied  on  America  to  supply  in  the  form 
of  (a)  raw  materials,  (b)  semi-manufactured  products*  (c) 
mamifactured  megrJlandiae, 

Second :  What  the  real  situation  is  in  the  textile  industry 
within  their  own  countries. 

Third:  What  exportable  surplus  they  are  now  able  to 
provide  after  caring  for  tbeir  own  consumer  needs* 

Fourth:  What  suggestions  or  recommendations  they 
would  offer  looking  to  the  financing  of  sales  of  teartile  prod- 
ucts which  would  be  secured  in  the  United  States. 

A  general  summary  o£  the  views  gathered  by  the  Commiltee 
in  the  conferences  indicated  that  practically  the  aeiy  textile 
product  required  from  the  United  States  would  be  raw  cotton. 
The  large  textile  manufacturing  plants  of  these  countries 
have  recovered  their  equilibrium,  and  home  requirements 
have  been  met  and  a  considerable  exportable  surplus  pro- 
duced* Early  in  1920  normal  pre-war  operatioDB  will  be 
established  subject  to  (a)  the  securing  of  necessary  raw 
material,  (b)  the  adoption  of  a  48-hour  week  as  against  the 
54  to  63-hoar  wedL  of  the  pre-war  period. 

Cm  Finance  Cotton  Importations 

In  general  the  mills  and  merchants  were  amply  able  to 
finance  thdr  importatioiis  of  raw  coMon  even  at  the  depre- 
ciated  exchange  since  the  world  demand  for  textiles  is  great 
enough  to  absorb  their  entire  product  at  prices  which  will 
cbmpensate  for  the  extra  cost  Of  materials. 

The  Committee  has  drawn  up  recommendations  for  the 
Finance  Committee  based  on  the  belief  that  d^eciated 
Mijiange  fal  a  imrmm  hardship  to  the  importing  country  wh^ 
the  product  is  to  be  consumed  in  the  country.  Conversely, 
tXKh  it  ii  10  much  of  a  handicap  to  American  ^dport  trade 
when  our  products  come  into  competition  in  the  world's 
importing  markets  with  products  sold  for  currency  costing 
the  teyer  iM  than  the  American  dolto 


80 


PLANS  P£&MAN£NT  CONF£&fiN€£ 


vni 

Plans  Permanent  Conference 

Organization  Committee  lays  down  the  lines  on  which 
a  permaneni  internatim^  trade  body  should 
'  be  formed  and  defines  its  functions 

nPHE  Committee  on  Permanent  Qrganiaation  begs  to  mport 
""-that  it  has  given  careful  consideration  to  the  subject 
referred  to  it  and,  by  unanimous  action,  joins  in  making  the 
following  recommendations; 

I.  Need — ^That  the  need  of  more  comprehensive  organiza- 
tion of  the  commwrial  and  financial  interests  of  the  various 
nations  is  imperative  and  that  the  present  International 
Trade  Conference  should  serve  as  the  foundatiom  m  whiob  to 
cnstract  a  pennannt  organisation. 

II.  Purpose — The  Committee  has  adopted  and  recom- 
mends  Hm  UikmBg  statsmtet  of  general  purpose; 

To  Promote  and  Co^rdmaie  Trade  SMottt 

The  purpoee  of  the  organizaiion  is  to  promote  inknudumat 
commerce  J  to  facilitate  the  commercial  intercourse  of  nations, 
to  secure  harmony  of  action  on  all  international  Viestions 
ineohirvg  coinmeree  and  peace,  progress 

and  cordial  relations  between  the  countries  and  their  citizens 
by  the  eo^peratim  of  business  and  the  associations  demled  to 
thedenhprnerdof  cornmereeandindaslry, 

III.  Specific  Aintf— Your  Committee  beUeves  that  theq^ 
dfic  aims  ^  the  organimtion  should  be: 

(a)  To  create  a  permanent  intiematiooal  headquarters 
whiA  wfll  oentraUae  all  <tela  coneermig  eoonomic  subjects 
and  social  conditions;  the  facts  relating  to  respective  needs, 
nciiflnk  Droduction  ttod  future  nosrifailUiei  of  endh  aouitry. 


) 


INTERNATIONAL  TBADE  CONFERENCE 

(b)  To  act  as  an  instnimeiit  <tf  oo-ordmatioii  wkich  will 

suggest  business  regulations  and  legislative  measures  to 
facilitate  and  encourage  economic  interoourae. 

(c)  To  inform  poMic  opinion  through  publication  of  facts 
concerning  business  conditions  and  through  dissemination  of 
the  vtews  of  tirlinical  egcpcrts  and  bosineBs  mgn> 

(d)  To  put  at  the  disposal  of  all  official  organizations  the 
reports  and  conclusions  prepared  by  these  t^J^n*^^^  esqperts 
and  bosinesB  OMn. 

Worn  and  Membership  of  Conference 

lY.  Plan  of  Orgmwdumr^T^  Committee  presents  the 
following  suggestions  as  the  basis  for  a  plan  of  organization: 

(a)  This  ofgamiation  shdl  oonsist  ol  the  following  ele- 
ments: 

(1)  A  board  of  directors  consisting  of  two  members  selected 
by  eadi  nation.  Intheeventof  the  inability  of  such  cBiectors 
to  attend  the  meetings,  they  shall  be  represented  by  an  equal 
number  of  alternates. 

The  board  of  dneetors  shall  have  general  charge  of  the 
business  of  the  organization,  supervision  of  its  policies  and 
direction  of  the  activities  of  the  intematiimal  headquarters 
and  its  staff.  It  shall  determine  the  questions  to  be  placed 
upon  the  agenda  for  all  meetings. 

(2)  An  international  headquarters  shall  be  located  at  the 
seat  of  the  organization.  One  representative  of  each  member 
nation  shall  be  attached  to  the  international  headquarters* 
who  diall  be  resident  at  the  seat  oi  CMrganiiation.  and  may 
have  such  necessary  technical  assistants  as  the  board  of 
directors  may  determine. 

(3)  There  ahaD  be  a  corresponding  national  bureau  in  eadi 
country,  which  will  maintain  constant  relations  with  the 
international  headquarters. 

(b)  Tliis  organization  may  indudie  all  countries  that  are 
^  members  of  the  League  of  Nations,  but  subiject  to  election 

by  the  Board  of  Dnedeit. 


« 


^■■■■■■BiHBBaBBBBnaaBBBBBBBnBHB^ 

PLANS  PERMANENT  CONFERENCE 


(c)  The  membership  of  the  (^^ganiieation  shall  consist  of 
chambers  of  commerce,  commercial  organizations,  banking 
associations,  and  shnflar  associations,  the  votes  of  wUdi 
shall  determine  all  questions  of  poUcy.  Firms,  corporations 
and  individual  bankers  or  business  mra  shall  be  eligibie  to 
admission  as  associate  members  by  vote  of  the  board  ot 
directors  and  under  regulations  to  be  prescribed  by  the 
directors.  Such  associate  membera  shall  be  entitled  to 
receive  the  reports  and  bulletins  of  the  organization  and  shall 
be  privileged  to  attend  meetings. 

(d)  In  any  nation  having  a  national  board  or  organization 
of  its  commercial  interests  the  members  of  the  board  of 
directors  shall  be  chosen  by  that  organizaticm.  In  countries 
where  sudi  national  board  or  organizatmn  does  not  exist,  the 
plan  of  permanent  organization  to  be  later  prepared  shall 
reoommffafid  some  equitable  method  for  choioe  of  dtreetora. 

General  Conference  Every  Second  Year 

(e)  The  regular  meetings  of  the  generd  niemberridqp  of  ^ 

organization  shall  be  held  at  intervals  of  two  years,  except 
that  provision  shall  be  made  for  the  caUing  of  special  meet- 
ings when  necessary.  At  such  international  ccmferences  eadi 
organization  represented  in  the  membership  shall  be  entitled 
to  send  not  more  than  five  delegates,  who  shall  have  the 
privilege  of  discussing  all  questions  presented  to  the  Congress. 

(f)  In  taking  a  vote  at  the  Congress  each  delegate  shall  be 
entitled  to  one  vote.  The  vole  shall  be  taken  in  the  first 
instance  by  a  show  of  hands  and  the  questions  shall  be 
decided  by  a  majority  of  the  votes  recorded;  provided,  how- 
ever, that  delegates  rqmsenting  any  two  countries  nuiy  ask 
for  a  vote  by  nations,  in  which  case  any  decision  previously 
recorded  shall  be  final  if  the  resolution  proposed  by  tbs 
mi^iority  of  the  delegates  is  ratified  by  a  majority  of  the 
countries. 

(g)  In  aU  countries  having  a  national  board  or  organisation 

of  the  commercial  and  financial  interests,  the  applications  for 


INTEENATIONAL  TRADE  CONFEEENCE 


membership  in  the  international  organizatioii  shffB  ba  pnimcid 
IQKHI  and  BffpKfvtd  by  the  national  board  or  organization. 

(h)  The  Committee  on  Permanent  Organization  ahftH 
cooaider,  and,  if  posaiUe,  report  as  a  part  of  a  pnmanent 
plan  of  orgamsatkn,  some  imctical  method  dt  securing  the 
opinions  of  members  on  important  international 

the  intervals  between  the  wM>^4M7fff  of  the  Congress. 

(i)  The  Committee  on  Pmnanent  Organization  shall  also 
recommend  a  locatioii  for  the  permanent  headquarters. 

Five  NoHom  in  Tm^ormrf  Or§miamtkm 

V.  Temporary  Organizatim—ll  is  the  recommendation  of 
the  Commitlee  that  the  nations  represented  in  this  ccmfer- 
ence,  namely,  Great  Britain,  France,  Belgium,  Italy  and  the 
United  States,  shall  ccmtitute  a  temporary  organiiation, 
and  that  a  jdnt  ccMnmittee  be  appointed  representative  of 
these  nations  to  prepare  a  plan  for  permanent  organization; 
that  as  soon  as  practicable,  a  meetmg  be  called  by  ^ 
mittee  on  Organization  of  the  representatives  of  such  nations 
as  they  may  unanimously  determine  to  invite,  at  which 
meeting  the  plan  for  permanent  organiiation  shall  be  i»e- 
sented  for  adoption  in  final  form. 

The  Committee  recommends  that  the  delegates  in 
conference  from  eadi  of  the  five  countries  shall  select  imme- 
diately two  members  of  a  joint  conmiittee  on  permanent 
organization  to  present  a  coiuplete  plan  of  organisation  ior 
submission  as  provided  above. 


84 


WOULD  REMOYB  TRADE  RESTRICTIONS 


Would  Remcive  Trade  Restrictions 

Committee  on  Resolutions  urges  that  freedom  of  action 
in  business  be  restored  and  materials  and 
commodities  he  interchanged 

THE  varioas  Conferenoe  Conunittees  for  the  most  park 
were  organized  to  represent  particular  industries  and 
groups  of  industries  in  the  United  States  whose  direct  aid 
and  oo-operation  ware  desired  to  restore  the  normal  processes 
of  commerce.  The  members  of  these  Committees,  being 
representative  of  aU  the  factors  in  their  industries,  were  in  a 
position  to  say  what  could  or  eooM  not  be  done  in  their  pai^ 
ticular  hnes  in  meeting  immediate  needs  of  Europe,  and  like- 
wise wherever  it  wm  possible  to  secore  prompt  vssiibSi  Hms 
were  in  a  position  to  influence  action. 

Hcports  from  the  Conference  Conunittees  have  been  re- 
ceived and  adopted  by  yon.  In  general*  they  have  covepsd 
three  phases  of  the  questions  before  them: 

GiMifsfitfics  PlroMsnif  in  TIm^ss  GhHMi 

First— Matters  which  the  Committees  could  take  up 
with  their  industries  and  secure  action  with  little  delay; 

Second — ^Matters  caUing  for  legislation  or  m  which  it  is 
necessary  to  obtain  the  co-operation  of  governments,  and 

Third — Questions  calling  for  further  study  before  the  Com- 
mittee is  dthar  aUe  to  act  or  make  recbaimendaticiis. 

Through  the  instrumentality  of  this  International  Con- 
ference, accurate  and  dependable  statements  as  to  commercial, 
industrial  and  sodal  conditions  in  the  varioas  countrfes  reive- 
sented  here,  have  been  placed  before  the  public  of  the  United 
Slates  for  the  An*  tiflM.  Mnoh  nsur  inlwnnatioB  has  hssa 

86 


S9SSSSBSBSB5BSSBaBBBS^ 

INTBBNATIONAL  TRADE  CONFERENCE 


made  availaMe.  The  prdblems  myohfed  are  so  many  and  so 
complicated  that  no  business  man  of  experience  would  e3ii)ect 
the  CommitteeB  to  make  oonqmhennve  reports  and  laoom- 
mendations  as  a  result  of  the  comparatively  brief  considera- 
tion they  could  give  to  the  data  presented  to  them. 

It  is,  theref <m»  most  gratifying  that  eadi  of  the  American 
Committees  has  been  able  to  present  a  preliminary  report 
carrying  as  many  concsrete  suggestions  and  recommfliidaticms 
f<»r  prompt  action  as  they  were  justified  in  making  under  the 
circumstances.  These  reports  have  been  presented  and 
adq[>ted  by  you.  This  action  makes  unnecessary  qpedal 
resolutions  on  most  of  the  subjects  involved. 

Committees  Wiil  Contimse  InmeHaetkmi 

Each  Committee  iqfxxrts  the  need  ol  furtbor  woA  and 

investigation  in  order  to  follow  up  the  results  of  the  Con- 
ference and  to  deal  with  questions  which  could  not  be  dis> 
posed  of  immediately.  All  of  the  Comnnttees  of  the  Confer^ 
ence  will  therefore  continue  their  work  in  co-operation  with 
the  permanent  organizatkm  proyided  for  the  International 
Trade  Conference  and  the  Chamber  of  Commerce  of  the 
United  States,  whidi  wiD  do  everything  possifale  to  forward 
their  purposes  and  efforts. 

All  ot  the  rqpcvts  made  by  the  Committees  and  the 
proceedings  of  the  Conference  will  be  published  inunediately 
and  placed  at  tiie  diqposal  of  the  delates  to  this  Confarence 
and  the  business  and  financial  organizations  of  the  country. 
The  same  comree  wiU  be  folkwed  as  soon  as  additional  rqK^ 
are  received  from  the  Committees.  For  these  reasons,  your 
Committee  on  Resolutions  finds  it  necessary  to  prasnt  for 
your  consideration  only  a  few  resolutions  which  are  feoeral 
in  dharacter  and  which  may  be  sqparatdy  considered. 

The  following  two  resolutions  were  presented  by  the 
PetfoleiBn  fioBHWittftttj  considered  ttid  nF^f^nHd  by  the 


WOULD  REMOVE  TRADE  RESTRICTIONS 

■  I    I     II     111    I      I      I  I— — 1  nil.  I  !    I    ,    II  _    II  immmmmmmmmmm  m,  »  ,Hi  m 


Resolutions  Gkmunittee,  and  as  am^ided  are  recommended 
for  adoption  by  the  International  Trade  Cosi&rence 

Eedprocai  ReceinUkm  €f  NatknuOs 

Resolved,  That  it  is  the  sense  of  the  International  Trade 
Ccmference  tiiat  nationals  of  each  country  should  be  accorded 
reciiNrocal  recognition  in  foreign  countries  identical  witii  that 
accorded  in  their  own  country  to  nationals  of  other  countries. 

Go9eiiU»UiUai  Cantroi  of  hkbtetriee 

Whereas,  During  the  period  of  the  war  the  conduct  of 
commerce  and  industry  throughout  the  world  was  largely 
placed  under  governmental  control— the  fieedom  of  trade 

and  the  law  of  supply  and  demand  being  set  aside — and 

WHWHRAft,  It  was  generally  mderstood  that  this  sitaiatiaii 

was  purely  temporary  and  would  come  to  an  end  when  nor- 
mal conditions  should  be  re-established; 

Therefore,  Be  It  Resolved,  That  it  is  the  sense  of  the 
International  Trade  Conference  that  all  restrictioDS  on 
natural  economic  laws  dKNdd  be  lifled  as  soon  as  the  exoq^ 
tional  circumstances  growing  out  of  the  war  will  permit. 

The  following  resohition  was  sobmitted  by  the  Coal 

Conmiittee,  considered  and  amended  by  the  Resolutions 
Committee  and  as  am^ded  is  recommraded  for  adoption 
by  the  Conferaice: 

Restrictions  on  Coal  Industry 

Whereas,  Our  conferences  with  the  European  Coal  Com- 
mittees have  devdoped  the  need  <^  extending  and  continuing 

exports  of  coal  to  Europe  from  the  United  States ;  and 

Whebbas,  Various  restrictions  by  agOKsfes  of  the  Ameri^ 

and  European  Governments  prevent  the  most  efiTective 
measures  being  taken  to  provide  suitable  coal  of  sufficient 
quantities  under  conditions  mutually  advantageous;  and 

B7 


INTERNATIONAL  TRADE  CONFERENCE 

Whereas,  The  need  for  several  particular  classes  of  coal 
in  Euiope  and  the  production  of  mtny  diffierant  kinds  of  ooal 
in  the  United  States  make  it  necessary  that  the  purchase, 
shipment  aud  distribution  of  these  coals  should  be  handled 
throughout  by  practical  and  oupemnoed  bonneaB  men 
familiar  with  the  details  of  such  business;  and 

Whereas,  Governmental  lestricticms  seriously  interfere 
with  the  develqiment  of  permanent  and  deranUe  trade 
relationships  between  the  American  coal  industry,  and 
European  consumers; 

Therepobb,  Be  It  Resolved,  That  we  urge  the  abandon- 
ment of  governmental  restrictions  on  the  purchase,  shipment 
and  distribution  of  codl  from  America  ate  soon  as  ever  the 
circmnstances  of  the  respective  countries  will  permit. 

And  Be  It  Further  Resolved,  That  the  Conference 
request  the  Directors  of  the  Chamber  of  Commeroe  of  the 
United  States  to  bring  this  resolution  to  the  attention  of 
the  proper  American  authorities,  and  that  the  members  of 
the  foreign  Missions  be  likewise  requested  to  bring  it  to  the 
attention  of  their  respective  Governments. 

The  foUowing  resolution  originated  with  the  Resolutions 
Committee  itsdf  and  m  the  form  here  submitted  is  recom- 
mended for  adoption  by  the  Conference; 

Interchange  qf  CommodUies  and  Raw  Materials 

It  being  in  the  common  interest  of  nations  that  there 
be  the  widest  possiUe  devdopment  of  industry  and 


1 J 


rce,  and  that  prosperity  shooM  everywhere  prevail, 
the  International  Trade  Conference  deems  it  to  be  of  prime 
importance  that  there  should  be  the  widest  practicable  inter- 
change of  commodities  and  in  particular  the  freest  practicable 
distribution  of  raw  materials;  and  that  at  the  present  moment 
oonsidsraticn  should  be  given  to  the  ({ueslion  of  a  fair  dis- 
tribution of  raw  materials  in  connection  with  any  financial 
plans  {(x  the  revival  or  rehaluUtaticm  of  industries  which  have 
been  mtemipted  or  prostrated  by  the  war. 


List  oj  pamphlets  published  by  the 
IRVING  NATIONAL  BANK 


Volume  One 

No.  X.  The  Trade  Acceptance  a  National  Aflset. 
No.  e.  Federal  Tax  Law  of  1917. 

No.  S.  Inflwwioe  of  the  War  on  Trade — Domflstic  and  Foraifii. 
No.  4.  The  Trade  Aoo^tanoe  in  Nataonal  Preparedneit. 

No.  5.  American  Banking  in  Foreign  Trade. 

No.  6,  War  Time  Finances. 

No,  7.  The  Trade  Acceptance  Nationally  Launched. 
No.  8.  Govenimi^t  Price  Filing  and  Profit  Taxation. 

Volume  Tv» 

No.  1.  The  Financial  Aspect  of  Cotton. 

No.  2.  Practical  Questions  and  Answers  on  Trade  Acceptance. 

No.  3.  The  Relation  of  Industrial  Chemistry  to  Banking. 

No.  J^.  Trade  Acceptance  Progress. 

No.  6.  Federal  Reserve  Act  as  Amended  with  iUgulatione. 

No.  $.  The  Effiaeocy  oC  War  and  Pteoe. 

Ne.  7.  Gaveniment  Loam  and  Iniatioii. 

No.  8.  A  Trade  Acceptance  Review. 

No.  9.  Trade  and  the  War. 

Volume  Three 

No.  1.  Bioedemng  the  Ykkm  of  the  Anwrioan  Badmm  Man. 
No.  f  .  Trade  Acoeptanoe  GonMrvmg  the  Natioa*t  Reeouroea. 

Ne.  S.  The  Course  of  Bond  Prices. 
No.  4.  Foreign  Trade  Thought  of  1918. 
No.  6.  Ck>-operative  Organization. 

Vohme  Four 

No.  1.  Business  Problems  of  Reconatruction. 

No.  e.  Federal  Tax  Law  of  1918. 
No.  3.  Co-operative  Service  in  Foreign  Trade. 
No.  J^.  Industrial  Issues  of  the  Times. 
Ne.  $.  Fofeign  Trade  Thought  of  1919. 

VoLvme  Fiee 

No.  1.  Trade  Thought  of  the  Two  Americas  in  1919. 

No.  2.  Some  Factors  in  American  Prosperity. 

No.  S.  Wanted:  American  Spirit  in  Our  Foreign  Trade. 

Ne.  4.  What  ia  Wioi«  With  the  Electric  Raawaya. 

ffa»  5.  Hofw  Banka  are  Keeping  Abieaat  of  Fofeign  Trade. 


h 


I 

Hi 


I 


A., 


NEH 


International  trada  oonferanca. 
Atlantic  City,  1919, 

Trade  thought  of  poat^Mr  Europe 


CD  <  Ho 


IT 


COLUMBIA 


^M',yf.?S'''"Y  LIBRARIES 


004 


436105 


